A key performance indicator is just a number you watch because it tells you how the business is doing. A few well chosen ones beat a long list.
A starting list
Most small businesses can begin with these.
- Sales this month against last month
- Money owed to you and how old it is
- New enquiries and how many become customers
- Jobs or orders delivered on time
- Cash in the bank against what is due
Choose with care
Pick measures you can influence and can collect without extra work. If gathering a number takes a day, it will soon be skipped.
Review on a rhythm
Look at the same numbers weekly and talk about what changed and why. The habit matters more than the exact list.