Do You Know Your KPIs?

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When you run a business, we all know you have to wear a lot of hats; running the IT, HR, finance, operations, marketing, and sales departments.  Sure you can delegate all these tasks and hire experts to support you but the ultimate responsibility lies with you as the business owner. 

So how do you know when you are winning and what needs working on? 

Of course, there are the immediate needs of the business, like the IT failing which might require urgent attention, and of course the ongoing client work that takes your main focus.  But how do you stay on top of all the other duties and make sure everything runs smoothly?

Set some simple KPIs for each area of the business.

Key Performance Indicators are quantifiable measurements you can set to ascertain your business performance and delivery, which you can use to drive the business to deliver the results you want.  These may be a set of rules, targets, or benchmarks that you apply in your business, which will enable you to compare and contrast, and ultimately work towards. 

An obvious example might be setting financial benchmarks like a monthly or quarterly turnover target.  Perhaps it’s to gain a certain level of new business or achieve a specific number of subscribers. It may be to measure cashflow and profitability or staff output. 

MY 5 TOP KPIs THAT DRIVE BUSINESS ARE;

  • Sales and revenue growth – which is the most obvious barometer of financial success to ensure sales methods are effective

  • Income sources – measuring where business is coming from to enable you to monitor where to spend your efforts and what marketing is giving you the best result and what you should be selling more of

  • Profitability – considering all your business costs and outgoings over a period of time with the intention of improving profit margin %, cashflow and EBITDA

  • Turnaround and volume of output – how quickly you deliver your product and service and how you can improve business performance and systemisation to deliver more productively

  • Team productivity and delivery – which is an important part of setting accountability for your team members, whether employed or freelance – so you can ensure you get the best from your people

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Take action today

  • Dive into your KPIs so you can set some benchmarks that work for you and your business and see the improvements you want through 2021.

GOOD LUCK!  

 
Faye Watts
 
Have you read...?
Think Bigger, Aim Higher
Love What You Do, Not What You Don't
Do You Know Your KPIs?
Say No to Overthinking and Achieve More
Collaborative Targets for 2021
What is your Business DNA?
What is your perception?
What's On The Horizon?
Self Belief
Our Money Habits
 
Faye Watts

Faye Watts is a Strategic Business Coach and founder of London accountancy firm, FUSE Accountants. Sharing business development skills with business owners like you through planning, coaching, and advisory. She is also the co-founder of Audrey, an online platform for women who know there’s more to life, and sits on the board of various organisations, including as a trustee for the charity Neuroblastoma UK.

 

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