Track Your ROI
Are you getting value from what you pay for from your marketing channels, subscriptions, and employees
A common piece of business to be tracking your Return On Investment[ROI] are your marketing channels. Most businesses have several different channels being utilized such as Google ad spend, social media, network marketing, events, etc. These same businesses rarely intentionally measure their financial AND TIME investments that go into these channels to best understand what is working, and what needs work.
The equation is simple:
MROI(%) = ($$ Gained from Channel - $$ Spent on Channel) / ($$ Spent on Channel)
What is LESS apparent is evaluating the return on investment in your employees and the return on investment in non-marketing-expenses, or operational subscriptions.
Quick tip for understanding your ROI on employees:
Establish unbiased and objective numerical key performance indicators for that particular position. Use this to measure proficiency, growth, drive, and fit. This is more than just simply a manager evaluating an employee based on esoteric numerical values. EVERY position has the ability to find these measurements, just some are much easier than others. E.G. - conversion rates for sales professionals in your business (easiest)
Quick tip for understanding your ROI on non-marketing-expenses:
To a degree, this comes down to sound budgeting habits. Oftentimes in business (and personal), we subscribe to something for a trial, or to get one or two pieces of information, etc. Almost as many times, we forget about these subscriptions (especially if they are yearly!). and if they aren't large expenses, they can often go overlooked. At a minimum, go through line by line on your expense reports, and discuss with your team the VALUE YOU ARE RECEIVING FROM THIS EXPENSE every 6 months. If you and your team use something sparingly, then it might be time to cut it from your expense sheet.
*these are harder to evaluate* sometimes you should cut the ones you aren't sure about, then re-subscribe when it comes back up if needed!