The numbers that matter.
WHAT TO TRACK
Number of clients Monthly recurring revenue Revenue per client Hours spent on support
Churn: clients lost per year
Support requests per client
THE MOST USEFUL SINGLE NUMBER
Revenue divided by hours spent.
Compare that to what you charge for other work. If hosting pays materially less per hour, you are underpricing.
SUPPORT REQUESTS PER CLIENT
Identifies the clients costing you disproportionately.
A client paying the least and requesting the most is losing you money.
CHURN
How many clients did you have a year ago, and how many remain?
RECURRING REVENUE
The figure that determines whether the business is stable.
One-off project revenue is welcome and unpredictable. Recurring revenue is what pays fixed costs.
REVIEWING
Quarterly for the operational numbers. Annually for the strategic ones.
THE QUESTION TO ANSWER HONESTLY
Is this producing enough, per hour spent, to justify continuing?
If not, the answer is usually pricing rather than abandonment.
