Monthly Metrics: 6 KPIs Founders Can't Ignore
Founders must track 6 key metrics monthly to stay competitive. The shift to data-driven decisions impacts revenue and growth. Learn what to track and how to act on the data.
- 53.2% of small businesses saw improved financial health in April
- What this means for a £200k-£2m revenue business
- Three moves smart operators are making right now
- How AskBiz helps you track key metrics
- Warning signs to watch for in the next 30 days
53.2% of small businesses saw improved financial health in April#
According to the Experian Small Business Index, the small-business environment has improved, with a 3-point increase to 52.2 in April and a 9-point increase year over year. This improvement is supported by positive consumer credit trends among business owners. However, commercial credit utilization was up, and the number of companies with delinquent payments increased. This contrast highlights the need for founders to track their financial health closely.
What this means for a £200k-£2m revenue business#
For a Leicester-based Shopify seller doing £40k/month, a 9% rise in restaurant costs could mean a £3,600 reduction in monthly profit. To mitigate this, founders should track their revenue, customer acquisition cost, customer lifetime value, gross margin, employee turnover rate, and mental health metrics. By monitoring these metrics, founders can identify areas for improvement and make data-driven decisions to stay ahead of the competition.
Three moves smart operators are making right now#
Smart operators are tracking their cash flow weekly, renegotiating supplier payment terms to free up £10,000 in working capital, and implementing integrated profit management to optimize revenue and cost considerations. By taking these steps, founders can ensure their businesses remain competitive and profitable.
How AskBiz helps you track key metrics#
AskBiz's CFO Dashboard provides founders with instant access to their key metrics, including revenue, customer acquisition cost, and gross margin. By typing a question like 'What's my true landed cost per unit?', founders can get a clear answer and make data-driven decisions to improve their business. AskBiz's proactive alerts also notify founders of any changes in their metrics, enabling them to take prompt action.
Warning signs to watch for in the next 30 days#
Founders should watch for a 10% decline in revenue, a 15% increase in customer acquisition cost, or a 5% decrease in gross margin. These signs indicate potential issues in the business and require prompt attention. By tracking these metrics closely, founders can address problems before they escalate.
Your action plan for this week#
This week, set up a cash flow forecast in AskBiz to track your revenue and expenses. Identify one area for improvement in your metrics and create a plan to address it. Finally, schedule a monthly review of your key metrics to ensure you're on track to meet your business goals.
People also ask
What metrics should I track monthly as a founder?
Track revenue, customer acquisition cost, customer lifetime value, gross margin, employee turnover rate, and mental health metrics to make data-driven decisions.
How do I calculate my customer acquisition cost?
Divide your total marketing spend by the number of new customers acquired in a given period, usually a month or quarter.
What is the importance of tracking mental health metrics?
Mental health metrics, such as stress levels and burnout rates, directly impact decision-making and overall business performance, making them crucial to track.
What is integrated profit management?
Integrated profit management is a approach that considers both revenue and cost factors to optimize overall profitability, often used in industries like hospitality.
How does AskBiz help with tracking key metrics?
AskBiz provides a CFO Dashboard with instant access to key metrics, proactive alerts, and data-driven insights to help founders make informed decisions.
Alice Watson is AskBiz's Head of Market Intelligence, tracking regulatory shifts, pricing trends, and growth signals across global SME markets to provide actionable briefings for founders.
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