KPI Tracking: 6 Metrics Founders Need
250 small businesses went bankrupt last year due to poor cash flow management. Track revenue, cash flow, customer acquisition cost, customer retention rate, employee turnover rate, and overall business performance index to avoid this fate. Use data to make informed decisions and drive growth.
- 78% of Hiring Comes from Small Businesses
- What this means for a £200k-£2m Revenue Business
- Three Moves Smart Operators Are Making Right Now
- AskBiz: Surfacing Cash Flow Warnings and Enabling Data-Driven Decisions
- Warning Signs to Watch for in the Next 30 Days
78% of Hiring Comes from Small Businesses#
According to the U.S. Chamber of Commerce, small businesses have accounted for about 78% of all hiring in the country since 2001. This number has increased to 4 million jobs per month, with over three-quarters of all new job openings coming from small businesses. To keep up with this growth, founders need to track key performance indicators (KPIs) that provide insights into financial health, operational efficiency, and workforce dynamics.
What this means for a £200k-£2m Revenue Business#
For a Leicester-based Shopify seller doing £40k/month, tracking KPIs can mean the difference between profitability and bankruptcy. For example, if they are spending £10k per month on customer acquisition, but their customer retention rate is only 20%, they may need to adjust their marketing strategy to focus on retaining existing customers rather than constantly acquiring new ones. By tracking KPIs, founders can identify areas for improvement and make data-driven decisions to drive growth.
Three Moves Smart Operators Are Making Right Now#
Smart operators are making three key moves to drive growth: first, they are using data to inform their pricing strategy, such as tracking total revenue per guest and total profit per guest; second, they are investing in employee retention and development programs to reduce turnover rates; and third, they are diversifying their revenue streams to reduce dependence on a single source of income. By making these moves, founders can reduce risk, drive profitability, and achieve sustainable growth.
AskBiz: Surfacing Cash Flow Warnings and Enabling Data-Driven Decisions#
AskBiz surfaces a cash flow warning: 11 days of runway left based on your Xero data. The AskBiz CFO Dashboard provides founders with real-time insights into their cash flow, margins, and break-even points, enabling them to make informed decisions about investments, pricing, and hiring. By typing a specific question, such as 'what is my true landed cost per unit?', founders can get instant data-backed answers and take action to optimize their business.
Warning Signs to Watch for in the Next 30 Days#
Founders should watch for four warning signs in the next 30 days: a decline in revenue growth, an increase in customer acquisition costs, a rise in employee turnover rates, and a decrease in cash flow. If any of these signs appear, founders should take immediate action to address the issue and prevent it from becoming a major problem.
Your Action Plan for This Week#
This week, founders should take three key actions: first, set up a cash flow forecasting system to track and predict future cash flow; second, review and adjust their pricing strategy to ensure it is optimized for profitability; and third, track and analyze key KPIs, such as customer retention rates and employee turnover rates, to identify areas for improvement. By taking these actions, founders can drive growth, reduce risk, and achieve sustainable success.
People also ask
How to track KPIs for small business growth
Track revenue, cash flow, customer acquisition cost, customer retention rate, employee turnover rate, and overall business performance index to drive growth and profitability.
What are the most important KPIs for founders to track
The most important KPIs for founders to track include revenue, cash flow, customer acquisition cost, customer retention rate, employee turnover rate, and overall business performance index.
How to use data to drive business growth
Use data to inform pricing strategy, optimize marketing spend, and identify areas for improvement, such as reducing customer acquisition costs and increasing customer retention rates.
What is the definition of KPI tracking
KPI tracking refers to the process of monitoring and analyzing key performance indicators to measure business performance, identify areas for improvement, and make data-driven decisions.
How does AskBiz help with KPI tracking
AskBiz provides founders with real-time insights into their cash flow, margins, and break-even points, enabling them to make informed decisions about investments, pricing, and hiring.
Alice Watson is AskBiz's Head of Market Intelligence. She tracks regulatory shifts, pricing trends, and growth signals across global SME markets — and turns them into briefings founders can act on before their competitors notice.
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