You work tirelessly to grow your business by focusing on generating revenue, managing expenses, recruiting talent, putting out fires, and everything in between. But do you really know how well your business is performing?

Many business owners determine if they’ve had a successful year only when they close the books and look at net income. Sometimes they do it simply by checking the account balance. This type of management significantly limits a company’s potential at best, and at worst sounds the alarm when it’s too late to adapt and change.

There is a better way to measure your company’s performance on an ongoing basis. Ratio analysis and benchmarking are two disciplines that will help you monitor your company’s daily performance and compare your company to the best-in-class. Knowing which aspects of the business to prioritize at any given time and which aspects generate the greatest return will help you control your company’s destiny.