If you own a business I am fairly certain that you would be able to answer this question:
“How much was your sales revenue last month?”
If that number rolls off your tongue without you having to log into Xero (or Sage / Zoho / QuickBooks…) that’s to be expected.
But what if I asked you these follow-up questions:
❓ “What’s your customer acquisition cost?”
❓ “How many of your clients stick around for more than 6 months?”
❓ “Could you take 2 weeks off without everything falling apart?”
Those questions are less likely to get a fast and certain response.
The reality?
Revenue is not the best indicator of whether your business is thriving.
It just tells me you’re making sales.
It doesn’t tell me if your business is healthy.
The 3 Business Health Metrics I Look For:
📍 Customer Acquisition Cost (CAC):
How much does it cost you to get one new paying customer?
If this number is rising and your conversion rates are dropping, you’ve got a leaky funnel.
📍 Retention Rate or Repeat Purchase Rate:
Do your clients come back or refer others?
If you have to win new customers constantly, you’re always on a treadmill.
📍 Operational Independence:
How long can the business function without your direct involvement?
If your business needs you daily to operate, it’s not really a business—it’s a job.
Start Tracking This Month:
If you’re not yet measuring these, choose one to focus on this month.
For many of my clients, retention rate is the easiest place to begin.
Ask:
- How many patients/clients come back?
- What percentage sign up for a second offer?
- Do you have a referral system in place?
You’ll be amazed what this reveals.
What’s Coming Next:
In the next email, we’re talking simplification.
Why reducing your offers might be the smartest move you make this year.
📬 Want help defining your business metrics?
Book a free 30-min Clarity Call with me here: BOOK YOUR CALL NOW
To data-driven clarity,
Anne Gray
PS. When you are ready, here are a few ways we can work together:
- Join The Leaders’ Library – our fast-growing, free online community for business owners and leaders who want powerful group coaching, high-value networking, and real accountability – without the high price tag. Over 300 members are already in. Click here to join us now
- Need help growing or scaling your business? I offer Flowcode coaching and consulting for small to medium business owners who are ready to solve the problems holding them back. Don’t let another month pass without a clear growth plan. Book a call or check out my services here
- Are you a Health Care Practice Owner? Our flagship course, Grow Your Healthcare Practice, gives you the essential business skills they never taught you in varsity – and it’s been transforming practices across South Africa. The next intake fills up fast. Click here to get on the early access list