Many entrepreneurs can be so focused on the day-to-day operation of their businesses that they lose sight of the bigger picture. With so many moving parts involved in being an entrepreneur, it’s easy to lose sight of the long-term goals you have for your business. Every business owner needs a simple, measurable way to visualize their progress – and that’s where Key Performance Indicators come in.
Setting and tracking Key Performance Indicators (KPIs) is a useful way to stay on track towards your long-term goals, even if you are very busy with the running of your business. By setting KPIs, you create objectives for you and your business to attain over a certain length of time – they could be monthly, quarterly, yearly or anything you like. By doing this, you examine where you want you and your business to be in the future – for some entrepreneurs it might be about reaching a level of profitability, for others it may be about reaching certain new markets. The important thing is that your KPIs be measure and attainable, so you can both track them and achieve them.
By setting and tracking KPIs, you also keep your finger on the pulse of your small business. With so many moving parts in entrepreneurship, it is easy to lose track of how far you’ve come, and how far you still have left to go. Tracking your KPIs helps illustrate the progress you’ve made, and gives you the perspective of time toward everything you’ve achieved.
Business coaches are deeply familiar with KPIs – indeed, many of them use KPIs for their own businesses and careers, and your business coach will be able to help you set KPIs that are measurable and attainable for you. A good business coach also provides an experienced outside perspective toward you and your business, something that is worth its weight in gold. This kind of analytical yet understanding perspective will help you determine what your strengths are, and areas where you may benefit from adjusting your strategies.
KPIs aren’t just for entrepreneurs and small business owners – many large corporations use them to keep sight of goals and objectives, and to provide clarity about the present state of the company. Perhaps the most important KPIs are the ones that help you measure what’s important to your business. Think about the different goals you have for your business. You might have goals related to your customers or clients, your employees, your operations and your marketing. What are the metrics that are most important related to those goals?
For example, customer satisfaction and lifetime value of a customer might be really important for some businesses. Other businesses’ success may hinge on employee productivity or how quickly they sell through their inventory. Choosing KPIs based on your business objectives will make them more valuable.
The founder of Evolution Business Marketing & Communications, Chris Cathers has decades of experience in all aspects of entrepreneurship. With valuable insights on marketing, communications, accountability, Chris provides business coaching to clients and their companies across a wide variety of industries and sizes. Contact us at info@evolutionbusiness.ca or call us at 1-250-740-1844 to find out more about how Chris can help you take your business to the next level.
