In this episode, we discuss the numerous topics such as creating time frames for goal setting, the profound effects of social media and internet marketing, sustaining and encouraging company growth rates, and the transformative power of discipline in building a thriving business. Be inspired by Mike’s insights and discover the keys to unlocking success in the business landscape.
About Mike McDerment:
Mike McDerment is the co-founder and CEO of FreshBooks, the world’s #1 cloud accounting software for self-employed professionals. Built in 2003 after he accidentally saved over an invoice, Mike spent 3.5 years growing FreshBooks from his parents’ basement. Since then, over 10 million people have used FreshBooks to save time billing, and collect billions of dollars. A lover of the outdoors, Mike has been bitten so many times it’s rumoured he’s the first human to have developed immunity to mosquitoes.
Calculating your company’s growth rate
Your company’s growth rate is one of the most important metrics to track. It can help you understand how your business is performing, and it can also be used to set goals for the future. To calculate your company’s growth rate, you can use the following formula:
(Current Value – Previous Value) / Previous Value
For instance, if your company’s revenue was $100,000 in 2021 and $120,000 in 2022, your growth rate would be 20%.
In addition to your growth rate, there are a number of other important business indicators that you should track. These include:
- Customer acquisition cost
- Customer lifetime value
- Churn rate
By taking the time to track important business indicators, you can make better decisions that will help your business grow and succeed.
Here are some additional tips for tracking your company’s growth rate and other important business indicators:
- Set goals. What do you want to achieve in terms of growth, revenue, profit, etc.? Once you know what you want to achieve, you can track your progress and make adjustments as needed.
- Use a dashboard. A dashboard is a visual representation of your key metrics. This can be a helpful way to track your progress and identify trends.
- Get regular reports. If you don’t have the time to track your metrics yourself, you can hire a consultant or use a software solution to get regular reports.
By following these tips, you can ensure that you are tracking your company’s growth rate and other important business indicators effectively.