As a business owner, it's important to have a clear understanding of your company's performance and value. While aggregate numbers can provide some insight, ratios offer a more powerful way to gauge the relationship between different aspects of your business. If you're planning to sell your company in the future, tracking these six ratios can help you build value and make your business more attractive to potential buyers. 
1. Employees per square foot 
 
Efficiency in office space utilization is crucial for businesses. By calculating the number of square feet of office space you rent and dividing it by the number of employees you have, you can determine how well you've designed your workspace. Commercial real estate agents often suggest a general rule of 175–250 square feet of usable office space per employee. Tracking this ratio allows you to optimize your space and potentially reduce costs. 
 
 
2. Ratio of promoters and detractors 
 
Customer satisfaction and loyalty are essential for long-term success. The Net Promoter Score® (NPS) methodology developed by Fred Reichheld and his colleagues at Bain & Company and Satmetrix offers a valuable way to measure this. By asking your customers a single question – "On a scale of 0 to 10, how likely are you to recommend <insert your company name> to a friend or colleague?" – you can determine the percentage of promoters (those giving a score of 9 or 10) and detractors (those giving a score of 0 to 6). Calculating your NPS by subtracting the percentage of detractors from the percentage of promoters provides valuable insights into customer sentiment and predicts repurchase and referral behavior. 
 
 
3. Sales per square foot 
 
Measuring your annual sales per square foot gives you an indication of how effectively you're utilizing your real estate to generate revenue. Many industry associations provide benchmarks for this ratio. For example, a respectable retailer might aim for annual sales per square foot of $300. By maximizing sales within your available space, you can increase profitability and make better use of your resources. 
 
 
4. Revenue per employee 
 
Payroll typically represents the largest expense for businesses. Maximizing revenue per employee can significantly impact your bottom line. Look at companies like Google, which generated over $1.5 million dollars in revenue per employee in 2021. Comparatively, more people-dependent businesses may struggle to surpass $100,000 per employee. Monitoring this ratio helps you assess the productivity and efficiency of your workforce. 
 
 
5. Customers per account manager 
 
Maintaining a balanced workload for your account managers is crucial. The number of customers each account manager can effectively handle varies across industries. Some bankers may juggle over 400 accounts, while high-end wealth managers may only have 50 clients. Gradually increase the ratio of customers per account manager until you observe signs of deterioration, such as slowing sales or a drop in customer satisfaction. Finding the optimal balance ensures effective customer relationship management. 
 
 
6. Prospects per visitor 
 
Your website is a vital tool for generating leads and acquiring customers. Tracking the proportion of visitors who opt-in by providing their email addresses for future communication is essential. Conversion Rate Experts' co-founders, Dr. Karl Blanks and Ben Jesson, recommend benchmarking against your site's current opt-in rate rather than comparing with competitors. By conducting tests and striving to beat your own rate, you can improve conversion and attract more potential customers. 
 
Data is highly valued by acquirers. The more data you can provide, in the ratio format they're accustomed to, the more attractive your business becomes in their eyes. By actively tracking these six power ratios, you'll gain insights into your business's performance, identify areas for improvement, and enhance its overall value. 

Are you curious about the true value of your business?  Wondering if you're ready to sell it for maximum profit?  Or perhaps you're unsure if your current assets can support the life you dream of living? 

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