Here we are again talking about a three-letter acronym. In my opinion, the accounting and finance world has way too many of these! But, according to Ashley Altum, CPA, the letters KPI, which stand for Key Performance Indicators, are extremely vital to the success of your business because they help you measure your performance in any specific area. A business owner can then take that measurement, focus on that one key point (such as sales) and figure out a plan to improve. Sounds like common sense, right?!–It’s okay if it doesn’t, took me the entire episode and then some to really grasp this concept. Listen to the full conversation below!
Can’t get enough info on KPI’s? We understand! Check out this blog post for all you could ask for! What Are KPI’s?
Alright, so what did we learn today? Well, basically you can’t just make a budget, who knew?! As if making a budget is hard enough…you have to then track your budget and think about the numbers specific to your business. In other words, think about the top 5 things you want to happen in your business and what numbers tie to those specific things.
Let’s use myself (Colleen Lotz) as an example. I want to increase my clients. In order to do that, I need to set aside TIME to market and promote my business. Say, I allow 5 hours/week to solely promote my own business on social media, I then see if I gain any new clients from those 5 hours. If I do…SUCCESS! If I don’t, well KPI’s to the rescue!!
As business owners, we tend to want to fix it all and create more KPI’s than we can actually act on…this is a big no-no. Only choose the top 5! Focus on those and then move onto the next.
KPI TOOLS: Fathom works great, as well as Spotlight and one of our favorites Ilovenumbers.com
Major point from today…three little letters may not look like much, but those three letters can help you take your business to the next level. Don’t ignore them, use them, and start seeing your business grow!
We are so appreciative of all of you! Please leave us a review, leave a comment, tell us how we’re doing. Email us any time with anything you would like for us to discuss. We are so happy you’re here! Ashley@profitmatters.co and ColleenRyan7@gmail.com