Many business owners are good at building, servicing, and selling a product but they most likely do not know what their key numbers are for tracking expenses and profitability.

Why do you need to know your KPI's?

Because you are losing money.

That might sound harsh, but it's true. 

Many owners do not know the correct mark up to use when pricing jobs.
Many owners are under pricing their projects.
Many owners are not tracking their expenses and are paying too much for goods and services.

Once you know what numbers to track you can make better decisions, price jobs correctly, and know if you are hitting your goals. You don't need to track 20 different numbers, start with 5!

So what are KPI’s? These are key performance indicators you can use to measure your companies objectives. Here are some useful examples:

1. Total sales for the week

2. Money collected this week

3. Number of sales calls

4. Gross Profit for a specific product

5. Total Account Receivable

6. Lifetime value of a customer

7. Customer acquisition cost 

8. Net income percentage

9. Conversation percentage

10. 90 Day cash forecast

Not sure where to start, or which numbers are the best to look at? Our monthly fractional CFO services are a great way to gather those numbers, get feedback, and grow your company. Schedule a FREE consultation with one of our experienced professionals and we’ll help you improve your bottom line.