I was at the airport recently and I got thinking about the windsock as it was blowing around in the gusting winds. A windsock is a simple yet critical tool for pilots, as it tells them what direction the wind is blowing and at what speed, which is extremely important when you’re taking off or landing a plane.
What areas of your business do you need to know the velocity and direction?
Cash flow?
Lead flow?
Sales?
In today's episode, I share how to choose what to measure in order to make effective decisions, take the right action, manage your business well, and most importantly, be able to scale.
Hey everybody, Dan Holstein here helping your business take flight and today, as you can see, I am at the airport. And if you look at this device behind me here, it's called the wind sock, little orange and white device. And what that does, it tells pilots what direction the wind is blowing, and what speed. Which is important when you're landing, because you need to configure the plane and be able to react and prepare for the direction and importantly, the speed of the wind. And each one of those little sections is about three knots, or five miles an hour, so anywhere between 15 to 20 miles an hour of wind, and it's gusting, it's changing direction. So it's a little bit challenging to land in situations like that. At least you'll need your wits about you. So what's this got to do with business? Well, there's certain things in your business that you want to know the velocity and direction as well. For instance, cash flow. You want to make sure that you're clear that your cash is growing and at what rate or if it's declining, if you're going negative cash flow and at what rate, you want to know that as well, so you can do something about it. So you can look at your KPIs or your dashboard to show what's happening with your cash flow. You can take action so that you don't get blown off the runway as it were. There's other aspects of your business too that you want to keep track of in terms of metrics. For instance, lead flow. How many leads are actually coming in? At what direction? Are we increasing our leads or are our leads decreasing? Are we converting more of our leads or less of our leads? So having an effective dashboard in place is a critical components to be able to manage your business well and to be able to scale. Just a quick one today from the airport, that's it. If you have any questions about metrics in your business or how to scale, feel free to reach out, happy to have a chat anytime, and in the meantime, have yourself a fantastic week. Talk to you soon.