When you start a business, you expect it to flourish. Unfortunately, your business may fail. Or be successful in certain aspects and not others. For your business to do well, you have to familiarize yourself with KRAs.
But what are KRAs? These are Key Result Areas which are also referred to as Key Performance Areas. They are the metrics used to evaluate the performance of a specific business area.
Below are some of the Key Results Areas in Business;
Customer Satisfaction
Making your customers happy is one aspect of business that can either make or break your company. This area revolves around how you treat your customers, how you respond to their questions, customer retention, whether you get repeat sales, and what customers think, or say about your business. If your customers aren’t happy with any of these areas, then your business is bound to fail.
Product Quality
The quality of your product or service matters. Does it meet the customers’ expectations? Is it reliable? How does it compete with similar products or services? You need to be keen about the quality you offer. Low quality or unreliable product spells doom for your business. Customers will undoubtedly be disappointed if your product or service doesn’t deliver what it promises.
Innovation
Your business needs to evolve, keep up with the competition, or even stay ahead of the competition. For this to happen, you need to be innovative. This means that you should consistently work on new ideas that can improve your business. You can come up with new approaches, seek new markets, or introduce new products or services. Innovation is paramount to your business growth and success.
Profit Generation
Businesses exist for economic gains. And if your business isn’t making any profits, you can’t sustain it. That said, you need to be conversant with your sales, average margin, net profit, gross revenue, expenses, and net profit. These are key result areas that should be measured, yearly, quarterly or even monthly.
When you look at the key result areas discussed in this article, you’ll realize that they are part of the business. You may have consciously or unconsciously done something about some of these areas. Nonetheless, being aware of them gives you an edge in your business endeavors. With a good grasp of key result areas, you can meet your business targets as expected.…