Why Tracking KPI’s in your Business Matters

Key performance indicators also referred to as KPI’s represent the critical indicators of progress towards a goal. KPIs “provide a focus for strategic and operational improvements, create an analytical basis for decision making and help focus attention what matters most.”

One of the reasons I started the Blk Report was because I recognized that many small business owners were hustling backwards. Now this may be a hot take.. but contrary to what Instagram tells you, there comes a point in your business where investing in another Coach or Masterclass or spending more money running Facebook ads isn’t going to cut it. You’ve got to go back to the basics and really truly understand the fundamentals of your business.

Those fundamentals are rooted in your business financials and your KPI’s. How does the saying go? What gets measured gets done. It is important to regularly track KPIs in your business because it: ⁠⁠

1. Informs your Decisions: You should understand where your business is bringing in money and where you are loosing it. 
2. Indicates Returns: You should understand whether your investments and spending are generating positive returns. 
3. Communicates Value to Investors: Your KPIs provide data points for investors to gauge whether your business is a GOOD investment. 
4. Provides a Roadmap for Success: Allows both you and your team to understand priorities and align their work to things that matter. Ultimately, regularly measuring and reporting out against your KPIs ensures that everyone remains focused on the goals.

When I said sometimes the answer isn’t always investing in another business coach or ramping up ad spend- I wasn’t being facetious. I honestly believe that knowing your numbers and regularly tracking your KPI’s allows you to always have a pulse on what is working and what isn’t. 

Oftentimes, if you go too long without looking at your numbers- its not super obvious where you went wrong because now maybe a few things are broken. And that my friend is hustling backwards. As entrepreneurs we have to prioritize the fundamentals of our business. Your finances are just that- don’t ignore them but use them as TOOL to get you to the next level. 

Lets face it- your business deserves proactive and sound decision making- avoiding your numbers and blindly making investments in another program is not going to cut it. If you’re ready to get clear on your business fundamentals- I would love to help you. Sign up for a discovery call- lets talk numbers!