We talk about metrics quite a bit here.
Metrics are to business what the scoreboard is to a good basketball or football game.
As we have said, and you already know, business metrics are key performance indicators (KPIs) that help businesses track their progress towards achieving their goals.
Metrics can be measured on a variety of time scales, including daily, weekly, monthly, quarterly, and annually.
Monthly and quarterly are both very commonplace, and for very obvious reasons.
If you are not reviewing your “holy trinity” of financial statements on a monthly basis, those being the balance sheet, profit & loss, and statement of cash flows, you are playing blindman’s bluff with your business.
Quarterly is also important because they corollate loosely with the seasons, and also with payroll and unemployment insurance reporting requirements.
Our idea of tracking your business by trimester can provide you with additional unique and valuable perspective, and help you make informed decisions about your business strategy.
Tracking by trimester can also provide you with a comprehensive view of your business performance, which can help you make data-driven decisions and optimize your business strategy.
Some reasons for dividing the year into three equal trimester:
Easy to measure performance: By dividing the year into trimesters, businesses can easily track their performance and measure progress towards their goals. This can help them to make more informed decisions about how to allocate resources and make changes to their strategy if necessary.
Focus on short-term goals: Dividing the year into trimesters allows businesses to focus on short-term goals, which can help them to stay motivated and make progress towards their long-term objectives.
Estimated Taxes: The taxes you will owe as a result of non-wage income need to be paid four times a year, and trimester planning coincides nicely with the third and fourth quarter Estimated Tax payment deadlines. The second trimester of the year ends in August, 15 days before the September 15th deadline, and of course the year ends 15 days before January 15th.
Better planning: By dividing the year into trimesters, businesses can plan their activities and resources more efficiently. They can allocate their resources according to the demands of each trimester and adjust their plans based on the changing business environment.
Enhanced accountability: Dividing the year into trimesters can also help businesses to hold themselves accountable for their performance. They can set clear targets for each trimester and measure their progress towards these targets.
This can help to create a culture of accountability within the organization, which can lead to better performance and results.
Other Considerations
Here are some common business metrics that are often tracked on a trimester basis:
Revenue: This is the total amount of money generated by the business during the trimester. It is an important metric for measuring the overall financial performance of the business.
Sales growth: This metric measures the percentage increase or decrease in sales from the previous trimester. It is a key indicator of how well the business is growing.
Gross profit margin: This metric measures the percentage of revenue that is left over after deducting the cost of goods sold. It is an important metric for measuring the profitability of the business.
Employee and contract labor satisfaction: This metric measures the satisfaction level of contractors and support staff during the trimester. It is an important metric for measuring the overall health of the business and the effectiveness of its management.
By tracking these metrics on a trimester basis, businesses can gain valuable insights into their performance and make data-driven decisions to improve their operations and achieve their goals.
If you’d like to learn more about the many ways we are able to provide property investment businesses with the scoreboard they need to succeed message us on Facebook or LinkedIn…
…or just book a time to talk.
To your success!