Ready to invest? Performance measurement will tell you whether or not it's the right time. Is your ROI increasing? Are you financially stable? Does growth make sense?
But if you don't take risks, your business could be in trouble. Whatever your situation, it's important to know when to invest - and just as importantly, when you should hold back. Take a hard look at some of these telling signs:
The income statement is the report card
A combination of revenue, expenses, and your profits and losses, an income statement will tell you just how good your financial situation is (if it's not great, it's time to look at how you can grow that revenue without cutting essentials like HVAC training and marketing efforts).
Key performance indicators
These are a group of goals that should be set up as soon as your company has defined its mission, buyers, and targeted goals. They're pre-defined, and should be compared against your set times (such as every quarter). For example, you may have a KPI for the revenue generated from service maintenance agreements. If you're soaring above your KPIs, it's a strong indication that you're ready to invest.
Tools like the Dealer Needs Analysis (DNA) will compare you with other businesses similar to yours that are performing at top levels. It's important to compare yourself to industry standards to know where your business will most likely stand.