Whether you’re a sole trader or a larger organisation, knowing how your business is performing is critical to continued success. This is where your key performance indicators (KPIs) come in.
KPIs are measurable values that demonstrate how well you are achieving your key business objectives. Setting, tracking and evaluating these can provide clear direction and guide your decision making. The essential areas you’ll want to measure are finances, sales, and marketing.
By setting aside regular time to review your KPIs, you will understand how your business is doing and can react promptly and accordingly.
How KPIs benefit small businesses
According to smallbusiness.co.uk, companies who track data regularly are twice as likely to hit their targets. However, nearly half of the UK’s SME’s are failing to identify their KPIs. Of those companies that do establish KPIs, many fail to track or reassess their KPIs on a regular basis. This means that they could be missing crucial data for driving growth.
The main benefits for your small business are:
Clarification – helping you to clarify your current position and performance expectations
Benchmarking – providing a point of reference for making future or past comparisons
Focus – outlining the important aspects for your attention within the business
Consistency – enabling a consistent approach to achieving your business goals
Motivation – engaging your employees with your company goals
Accountability – highlighting both good performance and under performance across the business
Elimination of waste – helping identify inefficiencies within your business so that you can address these
Visit smallbusiness.co.uk to find out more about how KPIs can benefit your business. And if you’re short of time, our Business Support Services can help you develop and implement a set of measurements to suit your business needs. Our team are experienced in all aspects of business strategy and management. Contact us now to discuss your requirements.