You surely have heard about business KPIs. In fact, you’re probably monitoring a few right now. But are you tracking the right and effective indicators?
How are you measuring your analytical data? Are you sure you’ve got clear indicators for your business?
Let’s start with the basics. Business KPIs (Key Performance Indicators) are responsible for measuring value, which shows if a company is achieving their business objectives.
Business KPIs change depending on the industry. There are relevant KPIs almost everywhere. However, it all depends on your perspective and established goals.
For example, if you’re working in the medical sector, then blood pressure and blood sugar levels are solid KPIs that will allow you to perform better at your job.
Finding the effective indicators for your business is not always straightforward. But it’s an essential task t if you want to achieve business success.
Why should you set up your business KPIs?
If you’re not entirely sure why you should use business KPIs, then I’ll make it simple for you.
You can use KPIs to measure all sorts of value in order to get feedback on what you’re measuring. It allows you to evaluate the progress and success of any field.
Now, you need to carefully select your business KPIs. For instance, if you blindly choose industry-recognised KPIs, you might end up with results that won’t be useful at all.
You need to set up your own business KPIs depending on your organisational objectives. You can and should check popular industry KPIs as references but that’s about it.
When it comes to establishing your own, you should create a strategic plan. Then, you can identify which KPIs are relevant for that structure.
Let’s check a practical example…
When you go to the gym, they’ll do a KPI check on you. Do you know why?
I was at the gym this morning and they’ve checked out my chest, waist, blood pressure, BMI, and weight.
The idea is to measure these indicators on a regular basis to help me establish and improve my training plan. That’s exactly how you come to accomplish goals as well.
These KPIs are ways to measure where you’re at today and where you want to be.
Start working on your business KPIs today!
Now, KPIs can vary a lot from industry to industry. In case of a restaurant, your business KPIs would include these:
- Amount of customers per day
- Average customer value
- Resources/food costs
If you multiply your number of customers and the cash that they are spending on your restaurant, you can figure out your sales very quickly.
Then, you can also measure how much food costs do you currently have compared to how much money you’re making on a daily basis.
Work out what your KPIs are. If you can do it yourself, that’s fantastic.
The most important thing is to identify your business KPIs and determine how can you do the measurements in order to get the desired results.
If you’re facing difficulties, then, get in touch with your accountant and create a strategy to start testing different business KPIs. What works for a certain business might not work for yours.
Experiment different setups and find out what are your business KPIs. Start working on them today and watch how much value KPIs can bring into your business over time. Let’s get in touch right away!