Financial numbers and performance metrics are powerful tools for business owners.

As companies grow larger and more complex, they find more metrics are needed, says Gary Apanaschik, a business advisory services partner with PCW.

"But when establishing criteria for measuring a company's performance, it is important to stay focused on the right things, so less time is spent compiling and more can be devoted to analyzing and taking action," he says. "A focused approach allows management to react more quickly and possibly redirect strategy or operational planning."

Manuel Vegas, business manager at Piston Power, a custom engine shop, applies a laser-like focus on the bottom line. "That's the first number I look at," he says. "Then I look at cost of goods sold, gross profit and the comparative analysis of previous periods."

Vegas pores over those numbers on a monthly basis, and he uses the information he collects to identify trends and spot anomalies, both good and bad. While some of the options available to the nine-year-old company as responsive strategies are limited because of its size and the specialized nature of its business, Vegas believes it's important to translate analysis into action and pursues whatever avenues are available.

"In areas such as expense control, unfortunately, we don't have a lot of options outside of the usual method of shopping for the best price," he says.

"We look for suppliers that can provide us with comparable quality but are less expensive than other suppliers. We also shop for the best rates on medical and general liability insurance," he adds, "and we are diligent about performing routine maintenance on equipment to minimize breakdowns and energy usage."

Keeping the bottom line healthy starts with taking care of the top line, and Piston Power seeks to maximize revenues through additional sales and maintaining its current customer base.

Its core business is rebuilding automobile engines. It offers a full line of machine shop services for the automotive industry and for individuals who want to rebuild their own engines, including grinding crankshafts, boring and honing engine blocks, re-sleeving cylinders and refinishing cylinder heads. It also sells a complete line of engine repair, customization and modification parts.

The custom engines that Piston Power builds for the hot rod and race car segment have brought home the gold in many races, and that translates to positive marketing buzz for the company.
Service is the cornerstone of the company's revenue-growing efforts. "We provide excellent customer service," he says. "We survey new customers to make sure they are satisfied with our products and service, and we closely monitor quality control to minimize warranty claims and customer dissatisfaction."