Measuring Sales Metrics

There are all sorts of ways to measure the health of a business. I think the less scientific and common sense methods may be best.

Take this example.

One of my favorite walking routes takes me by a new small shopping area. The landscapers decided that a nice low hedge between the shops and the road would be attractive. The store closest to the road where lots of people walk for exercise was a Starbucks. Unfortunately there was no way to get to the coffee shop without an extra 50-yard walk to the driveway in either direction.

Six months after the shopping center opened there was a clear path worn through the vegetation and the hedge where pedestrians, too lazy to walk the extra distance to get their daily latte, had created a shorter route.

About 18 months ago, the Starbucks closed, as part of the corporation’s restructuring and slowly the hedge recovered and the path disappeared.

Three months ago a new locally-owned coffee shop took over the Starbucks’ location. I asked the owner recently how business was and she said, “Fine, it’s only been a few months but we’re doing well.”

I’ll believe her when I see the path through the hedge re-appear.

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