Business Success Metrics
How to Know if Your Video Production Business is Heading in the Right Direction
Running a video production business comes with its fair share of challenges. You may have a general sense of how well things are going based on how busy you are or by glancing at your bank balance. However, without tracking key business metrics, it’s difficult to get an accurate picture of where your business is heading.
In this blog post, I’ll break down the essential metrics you need to track to ensure your business is not just surviving but thriving. By understanding the numbers behind your business, you can make informed decisions, spot opportunities for growth, and address potential issues before they become major problems.
Why Tracking Your Numbers is Essential
The famous management consultant Peter Drucker once said, "What gets measured gets managed." When you assign a numerical value to aspects of your business, you gain the ability to track progress, identify trends, and make informed decisions.
If you’re not tracking your numbers, you’re essentially flying blind. You may feel like things are going well, but without data, it’s easy to misinterpret reality. A great example of this comes from personal fitness: many people believe they exercise more than they actually do. But when they start tracking their workouts with an app, they often realize there’s a gap between perception and reality. The same principle applies to your business. By tracking key metrics, you get an objective picture of where things stand.
The Key Metrics to Track in a Video Production Business
Every business is different, but some core metrics apply universally to video production companies. Here are the key numbers I track in my business and why they matter.
1. Financial Metrics
The financial health of your business is the most critical aspect to monitor. I use Xero, an accounting software that helps me track the following numbers:
Sales Revenue: The total dollar value of sales invoiced each month. This shows how much business you’re closing and gives you an idea of your earning trends.
Expenses: The total dollar value of expenses incurred each month. Monitoring this helps ensure you’re not overspending and allows you to identify areas to cut costs.
Profit: Revenue minus expenses. Tracking this month by month helps ensure your business remains profitable.
Accounts Receivable: The total value of outstanding invoices. This helps you anticipate upcoming cash flow.
Days Outstanding for Payments: How long it takes for clients to pay after being invoiced. The longer this number, the bigger the cash flow issue.
By tracking these numbers consistently, you can quickly identify trends and take action when necessary.
2. Sales and Marketing Metrics
A strong sales pipeline is essential for business growth. I track my sales metrics using HubSpot, a CRM that makes it easy to monitor:
New Qualified Leads: The number of potential clients who are a good fit for my business.
Deals Closed: The number of new clients who have signed contracts.
Sales Revenue from New Clients: The total dollar value of new business each month.
Sales Close Ratio: The percentage of prospects who turn into paying clients.
These numbers give a clear picture of how effective my sales process is. If my close ratio is low, it might mean I need to improve my sales calls or proposals. If the number of new qualified leads is dropping, it signals that my marketing efforts may need a boost.
3. Advertising Metrics
If you’re running Google Ads or other paid advertising campaigns, you’ll want to track:
Ad Spend: The total amount spent on advertising.
Leads Generated: The number of inquiries coming from ads.
Sales from Ads: The revenue generated from leads that originated from paid campaigns.
By monitoring these metrics, you can determine whether your ad spend is delivering a positive return on investment.
4. Client Communication Metrics
Client satisfaction is crucial in the video production business. One way I track this is by measuring response times using Help Scout, a customer support tool:
Average Response Time: How long it takes to reply to client emails.
Percentage of Responses Under 2 Hours: The faster I respond, the happier my clients are.
Slow response times can negatively impact client relationships, so keeping an eye on this metric helps maintain high levels of customer satisfaction.
5. Content Marketing and Social Media Metrics
While content marketing isn’t my top priority, I do track some key metrics to ensure my business stays visible:
LinkedIn Posts Per Month: Both personal and business page posts.
Number of LinkedIn Followers: A growing audience signals increased brand visibility.
Conversations on LinkedIn: Engagement with potential clients.
Newsletter Emails Sent: Consistent email marketing keeps my audience engaged.
Blog Posts Published: More content means better SEO and brand authority.
6. Website Analytics
Using Google Analytics and Google Search Console, I track:
Website Visitors: The number of people visiting my site.
Lead Form Submissions: The number of inquiries coming through my website.
Traffic Sources: Where my visitors are coming from.
Understanding website performance helps me refine my marketing strategy and optimize for better lead generation.
The Best Way to Track These Metrics
Knowing which numbers to track is one thing, but actually keeping up with them is another. Here’s what I’ve found works best:
Use Software Tools – Xero, HubSpot, Google Analytics, and Help Scout all provide built-in reports that make it easy to extract data.
Automate Reports Where Possible – Many of these tools allow you to automate report generation, saving time.
Use a Simple Spreadsheet – A straightforward Excel or Google Sheets document can help track key numbers at a glance.
Delegate the Data Collection – I have a team member log into our apps monthly, enter the data into a spreadsheet, and generate a report. This ensures consistency and saves me time.
Visualize the Data – Plotting numbers in a graph helps you quickly identify trends over time.
Setting Goals Based on Your Metrics
Tracking your numbers is only useful if you take action based on what you learn. To stay motivated, I set three different goals for key metrics:
Minimum Acceptable Target: The absolute baseline I need to hit.
Achievable Stretch Goal: A realistic but challenging goal.
Aspirational Goal: The ideal outcome that pushes me beyond my comfort zone.
Having multiple targets helps me stay motivated without getting discouraged.
Take Action and Start Tracking
If you’re not already tracking your business numbers, I encourage you to start today. Even if your system isn’t perfect, simply beginning the process will give you valuable insights.
If you need guidance in setting up better systems to track your numbers and grow your video production business, check out my coaching program at ryanspanger.com. Let’s take your business to the next level together.
By consistently tracking your numbers and making adjustments based on real data, you’ll be able to build a stronger, more profitable business. The key is to develop habits that make tracking second nature and to use the insights gained to take strategic action.