I’m sure by now you’ve heard of KPIs or key performance indicators. If you’re growing a business, you want to have a variety of KPIs around managing that growth, you are likely to want to have some sales KPIs. These are targets that you’re setting, whether it be the number of phone calls that go out, then the percentage of the number of leads the conversion of leads, the dollars that you’ve converted it into.
There may also need to be some production KPIs to make sure that you can actually get the work out the door. Examples of this are amount of wastage that’s in your business, it could be the number of days it takes you to complete a process. There’s many, many things that you can look at other soft KPIs that you might want around the business, or things to do with just general well being of your business. It might be the turnaround time on phone calls, getting back to people, the number of people that are calling and who speaks to them.
Ultimately KPIs are vital in growing a business, making sure that you’ve got the right KPIs to see what the drivers are in your business. Then monitoring them on a weekly and monthly basis to make sure that everything is just ticking along where it needs to be. It’s going to help you maintain growth. If you combine that with your 90 day plan, and your goals for your growth, then chances are you’re going to have a great stable business.
There’s always accounting KPIs that you should to look at too. Things like margins, data days, stock turnover, even little things like the number of days off that your staff are having for sick leave or personal leave. Because that then gives you an idea of the welfare of your staff. You can do staff surveys on a regular basis so you can make them so they don’t have to put their name to them. But little things like that, that you can track.
Sit down with your accountant, work out what the levers are in your business, and then delve down to what the KPIs are. They’re going to help you manage those levers. Because ultimately, a KPI gives you the first hint that something has come off the boil. If you can deal with that quickly and effectively, work out what’s caused it and what you need to do to fix it, you’re going to keep your business growing.