5 Indicators To Evaluate Your Project - Ask The Rich

Saturday, May 12, 2018

5 Indicators To Evaluate Your Project

Monitoring and evaluating projects and businesses plays a major role in their success, sustainability and achievement of their objectives. Recent studies have found that among the reasons for the failure of the projects is the lack of sufficient knowledge from managers on what the evaluation process is and what it means, and even more not knowing how to do it in practice.
There are many financial and non-financial indicators that the project owner or manager should monitor. We'll try to highlight the most important indicators to keep in mind when managing a business:

5 Indicators To Evaluate Your Project

    1-Sales Control

This is to monitor sales consistently and compare them with days, months and years, focusing on two main things:
    A/Seasonal sales: watch the months of high sales in the season and the months that fall in the same season. 
    B/Comparison of a store with another store: For example, a library has 4 branches and its sales increased by 50% compared to last season, where it had only two branches. Here we have to focus on comparing the sales of 4 branches in 4 branches and not 4 branches in two branches.

    2-Sales profitability

You have to focus on profit instead of focusing on selling only without making high profits, such as focusing on selling many products and making a weak profit. It has to be the opposite.


Among the figures to focus on are the expenses of all operating and non-operating classifications, in which the various expenses, such as the cost of rents and salaries, are to be compared as a sum and as a percentage.

    A/Rents: vary from branch to branch but total rents are clear and consistent, requiring you to compare them with sales, as the rent does not exceed 10 per cent of sales per year. Then the return on the square meter: This section is reflected in the knowledge of income and divide it on square meters to see how much the return of the square meter.

    B/Salaries: You have to compare salaries in order to determine the percentage of sales, which increase as a sum and decrease as a proportion and this is not a problem, the most important is how the proportion of salaries of sales, for example, this year the salary ratio represented 20 per cent of the sales and the quality of the project you invest in determines whether this is low or high.
There are some companies that use an additional index to calculate the cost of employees and come in annual total sales divided by the number of employees to determine the proportion of contribution per employee in the annual income and find out whether the employee contributed to raise the proportion of income of the company or not.


    -Number of customers: The follow-up of the number of customers should be more important than the follow-up of sales, the number of customers may increase and sales decrease or vice versa. Knowing the number of customers contributes to determining the percentage of sales and the price.

    A/The amount of customer purchases: reflected in the number and price of purchases of customers have increased or decreased.

    B/The percentage of new customers: means that each project has a number of new customers and permanent customers, if you have only permanent customers, this indicates that you do not acquire new customers, while if your customers are all new here is the problem as it shows that your product does not like the customers what Make them not come back to you again.

    C/Customer satisfaction on the service: be through direct question to them about the service and compare the current answers to the answers related to months and past years, and then focus on the means of social reach varied to observe the satisfaction of customers about the product.

    5-Percentage of R&D expenditure

This indicator is dependent on the big companies such as the pharmaceutical sector, which requires development and research on a continuous basis, which determines that this institution is able to invest and competition in the future or not and the turnout by investors.
There is a very important point to note: one of these indicators is not enough to judge the company and determine whether a company is successful or not.

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