Set KPIs by recognising the key aims of your business. Ask yourself what you want to achieve for your business, and then you can set business objectives that are both measurable and help drive your decision making.
The number of KPIs you measure should be a short list - these are your most important business priorities, after all. A KPI should be a numeric value range. Outline the parameters of your KPIs - each KPI should have a numeric goal with a high and low quantity around that goal.
Before you set and track your KPIs, it's best to research the benchmarks for your industry.
KPIs differ by industry. For example, having positive cash flow is crucial for a startup, while having an accurate indicator of inventory value and sales performance is important for retail.
The good news is that your 9 Spokes dashboard can help you pick appropriate metrics. When you sign up and select your industry, your dashboard will launch with a sample display of relevant visual metrics (or 'widgets') for your industry. That makes selecting (and then tracking) your KPIs easy.
There is no need to switch between multiple apps. The 9 Spokes data dashboard will showcase your small business metrics in one easy-to-read interface. Even better, it's free and can be set up in minutes!
Setting the right KPIs for your business will help you be more efficient and enable better and more focused decision-making. With so many different metrics available to track, choosing the right key performance indicators can seem difficult.
Choose KPIs that help you take action within your business and help keep your business growing. Key performance indicator examples include: