KPIs to track for small business - 10 KPIs
As a small business owner, it's important to track your key performance indicators (KPIs) in order to measure your success and growth. In this blog post, we'll outline 10 KPIs that you should track for small business in order to make informed business decisions. Keep reading for tips on how to get started!
Revenue is perhaps the most important metric for any business, as it directly corresponds to the amount of money that a business is bringing in. Businesses should track their revenue on a regular basis in order to ensure that they are making enough money to cover their expenses and make a profit.
Expenses are another important metric for businesses, as they directly impact a business's bottom line. By tracking their expenses, businesses can ensure that they are not spending more than they are bringing in. Additionally, businesses can use this information to identify areas where they may be able to cut costs.
Profit is the difference between a business's revenue and expenses. Businesses should aim to maximise their profit in order to be successful. Tracking profit on a regular basis can help businesses to identify areas where they may be able to increase revenue or reduce expenses.
4. Customer Satisfaction
Customer satisfaction is an important metric for businesses to track, as it directly impacts revenue. Happy customers are more likely to continue doing business with a company, while unhappy customers are more likely to take their business elsewhere. Additionally, satisfied customers are more likely to refer others to a company, which can help to increase revenue.
5. Employee Satisfaction
Employee satisfaction is also an important metric for businesses to track, as it can impact both customer satisfaction and productivity. Happy employees are more likely to be satisfied with their jobs and provide better customer service, while unhappy employees are more likely to be less productive and give poor customer service. Additionally, high employee turnover can be costly for businesses, so it is important to ensure that employees are happy with their jobs.
Productivity is another important metric for businesses to track, as it directly impacts profitability. By tracking productivity, businesses can ensure that they are getting the most out of their employees and resources. Additionally, productivity data can help businesses to identify areas where employees may need additional training or assistance in order to be more productive
7. Customer Acquisition Costs
Customer acquisition costs (CAC) are the costs associated with acquiring new customers. These costs can include marketing, advertising, and sales commissions. Tracking CAC is important for small businesses as it can help them to optimise their marketing and sales efforts to acquire new customers in a cost-effective manner.
8. Lifetime Value of a Customer
The lifetime value of a customer (LTV) is the total amount of revenue that a customer will generate for a business over the course of their relationship with the company. Tracking LTV is important for small businesses as it can help them to identify and target their most valuable customers.
9. Churn Rate
Churn rate is the percentage of customers who cancel or do not renew their subscription with a company over a given period of time. Tracking churn rate is important for small businesses as it can help them to identify and address problems that may be causing customers to leave.
10. Sales Cycle Length
The length of your sales cycle—the time between when a prospect becomes aware of your product or service and when they make a purchase—can have a big impact on your bottom line. Tracking this number will give you an idea of how efficient your sales process is and whether or not you need to make changes
As a small business owner, it’s important to keep track of your company’s progress with KPIs. By tracking these 10 essential metrics, you can get a holistic view of how well your business is doing and where you need to focus your attention. Doing this regularly will help ensure that your business is on the right track and making progress towards its goals.