New BiggerPockets Post: How to Use Key Performance Indicators to Fine-Tune Your Business
In my latest article for BiggerPockets I spread the gospel of Key Performance Indicators (or KPIs) and how important they are for systematizing and scaling your business (be it real estate or otherwise). As I note the common problem entrepreneurs (and real estate investors) have is something like this,
"...without hard numbers to evaluate how you are doing, you will often have that feeling in your stomach that something is wrong, but you’re not quite sure or at least you’re not quite sure what is wrong. First, you will think that it was your contractor that screwed up, then you will talk to him and then think it was several of the other vendors, such as the painter or electrician. Or maybe it was your real estate agent. Maybe you should sell the property on your own to save the commission. Or maybe that’s a waste of your time and you would still likely have to pay the buyer’s commission."
KPIs can not only help with meauring company perfomance and project performance (such as a flip) but are also great for measuring employees,
"...tracking KPIs also makes it easier to evaluate employees in general. It makes it easier to know who to let go, who to keep, and who to promote. Furthermore, it gives your employees something to aim for which can be very motivating. "
Check it out!
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