Not knowing the lifetime value of your client – If you’ve been in the business even a few years, you can add up your billings and divide by the number of clients to get your current lifetime value.  You should also look at how long they stay as a client.  These two metrics are critical in your business planning and if you have this data as part of your Business Dashboard, it will help you grow your business.

Even more important is knowing the lifetime profit a client generates.  Part of running a business is knowing what it takes to be profitable and if you don’t know this, you might find it hard to pay the bills.

You need a Business Dashboard with 3 – 5 key metrics, and this is one of them.

I just posted #1 in our IDEAS newsletter (free) that went out today.  I’ll be posting there, on Facebook and here on the blog during the next few weeks.

Please add your comments.  The last series about fee mistakes was hot, and I think this one could be a great one, too.  What do you think?

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