Once set, key performance indicators (KPIs) will tell you exactly how your business is performing. Have some big goals for 2012? Have full awareness of your gross margins and net profits.
Also keep in mind that even though you may have key performance indicators that are great goals to look to, continue to refine them and be completely realistic. The following are a few tips from Ron Smith, an HVAC industry expert and author of HVAC Spells Wealth.
What to include
Retail benchmarks should include, but are not limited to: residential service agreements, system enhancement and indoor air quality products, duct cleaning, residential demand service, operating expenses, and net profit. (For a list of specific percentages, see the book.) Smith also says a meaningful benchmark is about $130,000 minimum in revenues per employee.
If you’re one of the more advanced companies that has multiple facets of the business, such as construction work and retail sales, you’ll want to separate the two. As Smith puts it, “it is a rare individual who can be an effective retail comfort consultant making in-home sales presentations, and also work effectively with building or general contractors.”