In my post today I would like to talk about business measurements. Measurements are very important in running a successful business. Some fields of business such as accounting, are almost completely composed of measuring financial data. All fields of business are centered around measurements even if it does not seem like it. For example a cook has to know how much of any particular ingredient he has before he can make a dish. Another would be the a salesman would want to know the demographic of their target customer base in order to cut out people who most likely would not be interested in his products. Almost all information is relevant in business even many of the obscure facts.
For a business to be considered successful it has to be profitable. In order to achieve this status, a business must use measurement to find out where they can be most efficient in the use of their capital (money, resources, labor). Without these measurements most businesses would be sure to fail, because they would have no way to determine how they were doing, and information would be inconclusive as to whether they were making money or not. Also without business measurements in place it would be very easy for people to steal from a business, as they could not prove that they were missing anything.
Measurements are important for more than just for their own good however, business measurements are also for the good of the stockholders and the customers. A stockholder always wants data on a business before they invest money into it. also a customer may want to see how a business is holding up financially before buying a product or service from that business. Especially if they think they might want to return a product that they buy, or in case they need replacement products from that company. In conclusion business measurements are a fundamental part of business, and are important for the growth and longevity of any industry.
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