Business Economics: The Metrics that Matter for Your Business - Coaching Success - #497

<div> <p>Learn the business economics - the metrics that matter - for your business. Matt Reynolds dives into macroeconomics and microeconomic or unit statistics, healthy rates, and how to calculate these statistics. You don't know the health of your business if you don't know these metrics.</p> <div> <div> <h3>Business Economics: Know the Health of Your Business</h3> </div> <div> <p>You cannot go off how you feel about your business to know if your business is doing well. The reality is real, and if you fail to know the economic realities of your business, the economic realities will confront you when abject failure slaps you in the face.</p> <p>It's okay, though. Even if the metrics are bad or trending in the wrong direction, have a true, clear picture helps you identify problems and where you need to put your energy and effort to turn things around.</p> <p>If your waist goes up month after month, you're getting unhealthier, whether you're measuring it or not.</p> <p>These metrics give you an objective measuring standard to assess your business' health.</p> </div> <h3>Business Economics: Metrics that Matter for Your Business</h3> </div> <div> <p>Matt goes through each metric one-by-one. First, though, here are the metrics, organized into macroeconomic or business-level and microeconomic or unit-level.</p> <ul> <li>Macroeconomic (business-level) <ul> <li>top line revenue</li> <li>cost of goods</li> <li>gross margin or gross profit</li> <li>operating expenses</li> <li>net profit</li> </ul> </li> <li>Microeconomic (unit-level) <ul> <li>churn rate (or retention rate)</li> <li>number of subscribers</li> <li>average ticket price</li> <li>lifetime value of client (LTV) <ul> <li>per gross revenue</li> <li>per gross margin/profit</li> </ul> </li> <li>customer acquisition cost (CAC)</li> <li>CAC:LTV ratio (as gross margin)</li> <li>monthly recurring revenue (MRR)</li> </ul> </li> </ul> <div> <h3>Business Economics: Macroeconomic Metrics that Matter</h3> </div> <div> <p>The first and easiest metric to calculate is <strong