I Need to Know My Numbers
If you have a bias to action— you’ll understand this next part.
It’s really “easy” to just do things.
When you’ve gotten past that initial hurdle that most people struggle with (taking action), then it’s generally pretty easy to just keep taking action…
So then lies another problem. One that some don’t ever figure out. You might become successful without figuring this out. Many have. BUT the ones that DO figure it out are NEXT LEVEL.
Note— I haven’t figure it out yet
This next level is:
Deeply understanding your metrics.
Whatever your business is, whatever product you sell, if you don’t understand the role and flow of every single needle mover from start to finish, you, as the CEO, need to figure that out.
This might sound obvious to the experienced or the mathematically gifted, but this isn’t always obvious.
Action just happens. Things are just done. Businesses are just started and ran the way people know how to run them. And things like this aren’t even thought about.
I know business owners making a GREAT living just operating out of a pickup truck and a smart phone. And others just with a laptop in a cage somewhere.
They had ideas that they took action on and started a business. They found customers to pay for their service and then just grew from there. Never looking back, only able to see what’s right in front of them.
In many cases, that’s been me. But recently I’ve been reminded kindly that I need to know my KPIs… and I don’t.
I’ve been running and gunning. Starting different home services business models using main contractors and completely tunnel vision on the next service and next lead, etc.
But that all came to a halt when our meta ads agency wanted to quadruple our rate.
It forced me to pause and REALLY figure out what we needed here.
What was it that we REALLY wanted from running these ads. What did we not have in place that we were relying on the ads for…
And while I don’t have the numbers for you yet, these are the KPIs that I’ve been missing. Take these and look through your business to figure out how many of them you know.
1. Cost Per Lead (CPL)
How much does it cost you to get a potential customer?
2. Lead-to-Close Rate
How many of those leads actually become paying customers?
3. Cost to Acquire a Job (CPA)
What does it really cost you to land a closed job?
4. Profit Per Job
After all expenses, how much do you actually keep?
5. Break-Even CPL
What’s the most you can pay for a lead before you start losing money?
6. Top-Performing Services
Which service line brings in the best ROI?
7. Why Leads Don’t Close
Are you losing leads because of bad targeting, poor follow-up, or low intent?
If you stayed on this long enough to get here, I appreciate you. Either your friend or this genuinely interests you. Either way, I appreciate you. 🤙🏻