Do you find yourself implementing something and discover that the information on which you based your implementations are not correct? Do you have in place a measurement system that will tell you that something is wrong?
Sometimes we can make decisions on really outdated information, and in such a case, our efforts and our action steps, or final output from our work can be a complete failure.
How Did I Learn That I Need to Measure Things in My Small Business?
Before some period of time, I read a piece of old information that talks about increasing my productivity and profitability. I implemented proposed changes from that information and expected to improve myself and my business.
But, nothing has happened. My improvement became my nightmare. My profitability became even worse than before the implementation of those changes. Why? This was my first question! But, the answer to this question cannot come simply in my head. I need to have data and analyze them in order to make the right conclusions. If I come to the right conclusions I can be able to make the right decisions. If I make the right decision I can take the right action steps to avoid catastrophe.
Luckily, because of my integrated measurement system, I quickly realize that my last change was a mistake. So, the first thing was that I need to come back to the previous situation. After a quick return to the previous condition, everything was back to its normal state.
Why Having Measurement System is Important for You?
It’s important for you as an entrepreneur always to have measures for everything that you implement in your business. These measures will be your key performance indicators (KPIs) that you will measure and follow.
Having measurable measures in the form of key performance indicators, you will know what you are doing and how you move toward what you want to achieve. That’s a part of your process to increase your knowledge and your own business potential energy. If I don’t have a measurement system, I will don’t know that I’ve made a mistake that costs me money.
Not All Information Available is Correct for Your Measurement System
Each information is not correct by default. In my case, that information was around me from more than one source. Because of that, I believed that the information is correct. Also, I believe that the actions steps based on that information will improve me and my business. But, I was wrong.
This mistake doesn’t mean catastrophe for me and my business only because I have implemented a measuring system. This system quickly tells me that I am wrong. I am doing something wrong and will need to change something as quickly as possible.
On the other side, each piece of information cannot be taken for granted for every business or every entrepreneur. Entrepreneurship is not common sense. Everything is unique according to you, your own business, your market, your industry, your customers, etc. You cannot expect if something works for others that will immediately work for you.