KPI

 
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KPI = Key Performance Indicators 

I've been working with my monthly and quarterly clients to develop KPIs specific to their needs and have had amazing feedback on their benefits and information!

Why are they beneficial? They can be tailored to YOUR business to provide data on how things are going or could go. They can display information in different formats so you can see trends, patterns and comparisons over and above what a standard profit & loss or balance sheet would show. 

There are multiple KPIs you can track and what’s important here is that you choose which metrics are important for you and YOUR business.  What would give you valuable information?

Here are some examples of what you could track:

  • Gross Profit

  • Cost of Goods Sold

  • Profit Margin

  • Average Expenses

  • Average Number of Sales per Month

  • Average Sales Price

  • Average Number of Items Sold in a Transaction

  • Cash Flow

  • Customer Retention vs New Clients

  • Outstanding Invoices

  • Invoice Payment Times

These are opportunities to track anything that is meaningful to you! And there’s always a way… ALWAYS.

Here is an example of how you can use the data:


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This graph is showing monthly and year-to-date profit and loss (everyone should be tracking this but it's not common to see it in graph format),and comparing it to last year's graph. The green line is 2020 and the gold line is 2019. This graph clearly shows there is an almost seasonal trend to quieter months during the summer.

This provides the client with the info so they can then decide, do they accept summer is quieter or do you do something during those months like a promotion to increase sales during the typically quieter period?

What KPI would be beneficial for you to track in your business?

 
Rhian Dodd-Tovey