Metrics are the measurements by which you grow, record and account for the status of your business. The following metrics include a list of formulas that apply to HR, finance, marketing, sales and overall business development.

1. WHAT'S IN YOUR
METRIC TOOLBOX?
The benefits and drawbacks of
potential metrics best suited to a
successful business
Joey Price | Jumpstart:HR
@JumpstartHR | www.jumpstart-

2. How do we define
“business metric?”
A business metric is…
“any type of
measurement used to
gauge some quantifiable
component of a
company's
performance.”
@JumpstartHR | www.jumpstart-

3. KEY TAKEAWAY #1:
Business Metrics help you define, measure and react to company
performance.
@JumpstartHR | www.jumpstart-

4. THE RELATIONSHIP BETWEEN DATA,
DECISIONS AND METRICS
Every morning, we check:
 The time…
 Our breath…
 The weather…
Data
@JumpstartHR | www.jumpstart-

5. THE RELATIONSHIP BETWEEN DATA
AND METRICS
In response, we:
 Get dressed (or stay in
bed)…
 Brush our teeth…
 Bring the umbrella…
Decisio
n
@JumpstartHR | www.jumpstart-

6. THE RELATIONSHIP BETWEEN DATA,
DECISIONS AND METRICS
As a result, we:
 Get to work on time…
 Get fresh breath…
 Protect ourselves from the
elements…
Results
@JumpstartHR | www.jumpstart-

7. KEY TAKEAWAY #2:
Good data leads to good decisions which results in winning results.
Data Decision Results
@JumpstartHR | www.jumpstart-

8. 1) SALES REVENUE ($) =
CUSTOMER PURCHASES – COSTS
ASSOCIATED WITH PURCHASE
Benefits Drawbacks
@JumpstartHR | www.jumpstart-

9. 2) CUSTOMER LOYALTY AND
RETENTION = THE “STICKINESS” OF
YOUR BUSINESS
Benefits Drawbacks
@JumpstartHR | www.jumpstart-

10. 3) COST OF CUSTOMER ACQUISITION
= TOTAL ACQUISITION EXPENSES /
TOTAL NEW CUSTOMERS
Benefits Drawbacks
@JumpstartHR | www.jumpstart-

11. 4) OPERATING PRODUCTIVITY =
REVENUE / NUMBER OF EMPLOYEES
Benefits Drawbacks
@JumpstartHR | www.jumpstart-

12. 5) SIZE OF GROSS MARGIN (%) =
(TOTAL SALES REVENUE – COST OF
GOOD SOLD) / TOTAL SALES REVENUE
Benefits Drawbacks
@JumpstartHR | www.jumpstart-

13. 6) MONTHLY PROFIT OR LOSS ($) =
PRICE OF PRODUCT OR SERVICE –
(FIXED AND VARIABLE COST OF
PRODUCT)
Benefits Drawbacks
@JumpstartHR | www.jumpstart-

14. 7) OVERHEAD COSTS =
FIXED COSTS THAT DO NOT DEPEND
ON AMOUNT OF PRODUCT SOLD
Benefits Drawbacks
@JumpstartHR | www.jumpstart-

15. 8) VARIABLE COST PERCENTAGE (%) =
TOTAL VARIABLE COSTS / TOTAL
SALES
Benefits Drawbacks
@JumpstartHR | www.jumpstart-

16. 9) INVENTORY SIZE =
INVENTORY READY OR SOON TO BE
READY FOR SALE
Benefits Drawbacks
@JumpstartHR | www.jumpstart-

17. 10) HOURS WORKED PER PROCESS =
TOTAL LABOR HOURS PER PROJECT
Benefits Drawbacks
@JumpstartHR | www.jumpstart-

18. KEY TAKEAWAY #3:
Business Metrics help your business stay on track but not all metrics are
alike.
@JumpstartHR | www.jumpstart-

19. QUESTIONS?
Contact Me: About Jumpstart:HR
 Email: jprice@jumpstart-hr.com
 Web: Jumpstart-hr.com
 Phone: 301-244-8577
 LinkedIn:
www.linkedin.com/in/joeyvprice
At Jumpstart:HR, we do the HR work
for you. We’re proud to offer cutting-
edge, customized HR services built for
your small to medium sized business.
We work with your organization as a
virtual or on-site service provider to
streamline your Human Resource
policies, procedures, and challenges in
order to let you do what you want to do:
run your business. We provide the HR
knowledge and implementation
strategies to ensure your organization
is adhering to government standards
while increasing employee satisfaction
and productivity.
@JumpstartHR | www.jumpstart-