Use KPI's to Drive Your Business

Wondering if your business is going in the right direction or drifting off course? If you're anything like most sharp small business owners, you're probably keeping a close eye on your finances – tracking statements, sales, expenses, and receivables. These numbers give you a snapshot of where you've been and where you're at, which is great for understanding the past and present. But if you're solely relying on these figures to navigate your business, it's a bit like driving while fixated on the rearview mirror. Sure, you know where you've been, but what about the road ahead?

Enter the heroes of business metrics: Key Performance Indicators (KPIs).

These are the vital signs beyond the financials that help you anticipate what's coming. To really get a handle on where your business is heading, you've got to broaden your focus and pay attention to the numbers that matter specifically to your operation. Think about the steps potential customers take before they hit that "buy" button. It's about measuring the pre-purchase dance – things like website visits, webinar attendance, newsletter sign-ups, and proposal requests. If any of these metrics are falling short of your targets, it's a flashing neon sign that adjustments are in order.

Take web traffic and search rankings, for example. A slight dip in visitors might not set off alarm bells, but if it's a sustained decline, it's a surefire sign that something's amiss. Changes in traffic patterns often give you a sneak peek into what your proposal inbox might look like a month or two down the line – it's like having a murky crystal ball glimpse into the future.

Webinar attendance is another telltale sign, especially for businesses that use training sessions as a way to reel in leads. Keep tabs on registrations and be ready to tweak your strategies if attendance starts to dwindle – whether that means adding more sessions, sending out reminders, or firing up targeted ads.

Conversions and email responses are also gold. Sure, website traffic is nice, but it's those conversions that really pay the bills. Keep a close watch on downloads, newsletter sign-ups, and email click-through rates. When interest starts to wane, shake things up a bit – try different formats, add a personal touch, or give your email list a good scrub to see who's really engaged.

And let's not forget about proposals and closing rates – these babies are the lifeblood of your business. Know how many new projects you need each month and keep a close eye on the time it takes from that first conversation to a signed contract. If your proposal numbers are falling short of the mark, it's time to ramp up your sales efforts.

Just remember, KPIs should be directly tied to your business goals, easy to measure, and action-oriented. Pick metrics that align with what you're aiming for, keep that data flowing regularly, and always be ready to take specific actions to keep your performance on point. After all, it's hard to reach a destination if you're not sure which road to take.

Interested in working on your KPI's? Schedule an one-hour working session to get a clear view of the road ahead.