Metrics Worth Tracking
A starting guide for any businessIf you only measure six things, start with these. Each one answers a single plain question about how the business is doing, and together they cover sales, cash, profit, stock, customers and operations. Open any of them to see what to track. Once those six are in place, the next six go a level deeper.
Start here
Revenue
Are sales growing or declining?
Cash flow
Can the business meet its obligations?
Gross margin
How much remains after direct costs?
Stock health
Is stock available without tying up too much cash?
Customer retention
Are customers returning and staying?
Efficiency
How reliably and efficiently does work get done?
Then add these
Sales conversion
Are enquiries turning into sales?
Payment speed
How quickly do customers pay?
Net profit
What is left after all costs?
Payroll cost
Is the team cost in proportion to the business?
Customer satisfaction
Are customers happy with what they get?
Cost to win a customer
What does it cost to get a new customer?