Unlock Success in Your Business By Focusing on Lead Indicators

When I first ventured into the content creation world, I was all about the prize.  All about the results. 

"How can I increase my income?" 

"How can I generate leads or grow my email list?" 

These questions drove my daily actions. But when the money and leads didn't roll in right away, I became discouraged.  I feed off of quick positive feedback, and I wasn't getting it. 

So, I ended up hopping from one opportunity to another, never sticking with one long enough to see actual results.

Sound familiar? 

You see, I had a severe case of 'shiny object syndrome.' 

I was constantly switching back and forth between business ideas and looking for greener pastures. 

I'd start digging shallow wells all over the place, looking for the next best thing. But as you might guess, none of those shallow wells ever struck water.

That's when I had my lightbulb moment. 

If I want to hit water, I need to dig deep, not wide. 

I want to focus on daily activities I can control: creating consistent, quality content and engaging with my audience. 

Based on what I knew from other entrepreneur success stories and from playing sports, I knew that focusing on lead indicators would also have a positive effect on the lag indicators. 

So What Are Lead and Lag Indicators? 

A lead indicator is something you can actively influence and measure that will likely impact a future outcome. Think of it as a driver that propels you toward your goals.

On the other hand, a lag indicator is a metric that measures the outcome itself. It shows you the results but doesn't offer much insight into how to improve or replicate them.

Lead & Lag Indicators from Different Fields

To help give you a more concrete understanding of lead and lag indicators, here are some examples: 

Digital Content Business

• Lead Indicator: Regular posting schedule
• Lag Indicator: Subscriber count
• Lesson: Consistent content output keeps your audience engaged, leading to a gradual increase in subscribers.

E-commerce Business

• Lead Indicator: Cart abandonment rate
• Lag Indicator: Online sales revenue
• Lesson: Focusing on reducing the cart abandonment rate through better UI/UX or retargeting can lead to increased sales and revenue.

Info Publishing Business

• Lead Indicator: Number of quality articles or publications released
• Lag Indicator: Annual subscription renewals
• Lesson: By focusing on releasing high-quality articles or publications, you're more likely to retain subscribers and sustain a stable revenue stream.

Diet 

• Lead Indicator: Daily carb intake
• Lag Indicator: Weight loss
• Lesson: Controlling your carb intake can result in weight loss over time.

Brain Health

• Lead Indicator: Decrease or eliminate alcohol
• Lag Indicator: Improved cognitive function and mood
• Lesson: Reducing alcohol consumption can lead to improvements in cognitive function and mood. 

Personal Finance

• Lead Indicator: Monthly savings
• Lag Indicator: Retirement fund
• Lesson: Regular monthly savings contribute to a healthy retirement fund years down the line.

Social Media Influencing

• Lead Indicator: Engagement rate on posts
• Lag Indicator: Follower count
• Lesson: High engagement usually translates to an increase in followers over time.

Real-World Business Examples 

Now that you have a better idea of lead and lag indicators, here are some real-world business examples to show the power of focusing on lead indicators to grow a business. 

Consider entrepreneurs and content creators like Gary Vaynerchuk and Tim Ferriss and companies led by visionaries like Elon Musk and Jeff Bezos. 

• Gary Vaynerchuk: He didn't build his empire overnight. He posted daily content for years before seeing significant results. He consistently produced daily content for years, focusing on the quality and engagement rate as his lead indicators. The outcome? A brand that's synonymous with digital marketing success.
• Tim Ferriss: Tim embraced a process-driven approach. He prioritized delivering high-value content through his blog and podcasts. By measuring reader and listener engagement, he gained a loyal following and multiple best-selling books.
• Amazon and Jeff Bezos: Jeff Bezos put a spotlight on customer satisfaction and fast delivery. Jeff Bezos famously said, "We don't focus on the optics of the next quarter; we focus on what is going to be good for customers." Amazon focused on customer service as a lead indicator, which led to massive growth. These lead indicators, once perfected, catapulted Amazon to become the go-to for online shopping.  
• Elon Musk's Tesla and SpaceX: Elon Musk's lead indicator was the performance and efficiency of electric cars. Rather than merely trying to sell cars, he focused on proving electric cars could be better than gasoline cars. By focusing on making electric cars superior to fuel-based vehicles, Tesla became a leader in the auto industry. At SpaceX, instead of just thinking about profitability, Musk zeroed in on reducing the cost of space travel. The result was the creation of reusable rockets, which garnered multi-million dollar contracts.
• Airbnb: Initially, they focused on increasing listings. When they switched their attention to user experience and engagement as their lead indicator, they saw a surge in bookings and became a household name. 

These industry leaders identified their lead indicators, acted on them, and reaped the benefits in the form of robust lag indicators. Their respective empires didn't shoot to stardom overnight; their growth was calculated, measured, and earned.

Focus On Your Lead Indicators To Unlock Success

Success, whether you're an aspiring entrepreneur or someone working on personal goals, boils down to focusing on what you can control: the lead indicators. 

When you get that part right, the lag indicators, or the outcomes, take care of themselves.

Start with small, actionable steps. 

Maybe it's dedicating two hours each day to create content or reaching out to five potential clients daily. Measure these lead indicators and adjust your strategy accordingly 

Remember, fixating on outcomes you can't control will only serve to discourage you. Focus on what you can control: your daily actions and efforts. The outcomes will come when you least expect them.

So next time you find yourself overly concerned with results, take a step back. Consider what actions you can take right now that will make a difference. Those are your lead indicators, and that's where your attention should be.

Ready to make the shift and start digging deeper wells?  

Until next time, 

Josh Ford