Vareto Finance Glossary
Business drivers are the primary activities, personnel, and data inputs that drive a company's operational and financial growth. Business drivers can be a company's sales personnel, website traffic, unit sales, units produced, number of stores, etc. For any business to form a business strategy or establish a business model, the first step is to understand the main drivers of the business.
While business drivers can differ across industries, here are some common business drivers:1. Number of store locations2. Number of units sold 3. Product/service price 4. Number of salespeople5. Website traffic volume 6. Website traffic conversion rate 7. Rentals of office space8. Employee salaries
Why it matters
A company must identify its key business drivers and aim to maximize the effectiveness of all possible drivers that are under its control. There may be external business drivers that a company cannot influence, for example, the economic condition of the country. As an organization expands and gains complexity, identifying business drivers can be difficult. Therefore, companies must constantly assess and monitor business drivers.
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