Choosing trends and results to analyse
Factors that contribute to your overall success - often called key performance indicators (KPIs) - make a good starting point for regular trend analysis.
Reviewing key performance indicators (KPIs)
When choosing which KPIs to track and review for trends, look for factors that drive sales figures, costs and cash flow.
For example, when reviewing sales, monitor the figures that show what is happening in your business, such as:
- categories of products selling well
- how priority products with the best margins and the best payment terms are selling
- the performance of each sales person
- how conversion rates (i.e. ratio of leads to sales) are changing.
Measuring financial trends
These financial trends have a direct impact on business performance and are worth measuring:
- cost of goods
- cash flow
- net profit.
Learn more about using financial ratios to assess your business performance.
Analysing other trends
Other factors impacting on overall business performance include:
- speed of stock turnover
- payment terms and debtor or creditor days
- trading hours
- display area or floor space
- staff numbers
- waste management costs.