Analytics in Your Freelance Business
Today’s episode focuses on analytics in your freelance business. I’ve been taking a deep dive into my analytics recently because we’re looking to evaluate how the last few years have gone. We’re looking at the clients, the revenue, and the team to figure out where we are now and where we want to go next. Analytics are a good thing to look at when you’re trying to make a decision on where to go next in your business.
When looking at analytics, you certainly don’t have to be a “math person” to get on board. Some simple strategies will help you track your data and hopefully give you insight into the future of your business.
“Looking at analytics is a way to look at the past and predict and prepare for the future. It’s really simple, but if you’re just able to write these down and look at trends in your own business you’ll see what you can do for being proactive in your business. “
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In this episode Avani talks about:
- Why analytics are important to every successful business.
- What types of analytics you should keep tabs on.
- How to use that data to push your business forward and shape your strategies around growth.
1. Track monthly analytics
Make sure to track your revenue, profit, expenses and contractor expenses. These items are critical for every business out there. You can look at this two ways: 1) how much is coming in and going out, or 2) what’s been billed and what’s been paid. Anyway you slice the pie, you need to be tracking your money on a monthly basis.
2. Use averages per month to make decisions
If you take the number of months your were in business and divide your total revenue with that number, you’ll get your average monthly revenue. This is a great number to track year over year to see how you’re doing. Is it going up or down? Likewise, you can take the average revenue by the number of clients and make some decisions based on that data.
There are several more averages which you can choose to pursue or not (that I discuss further in the episode). They are helpful in figuring out how you want your business to operate and what kind of clients you want to bring on board.