KPIs: What Are They & How They Relate To Your Business

KPIs are an important part of every business. Learn what they are so you can track them and improve.

Do you know what a KPI is?   

Welcome to the Love of Business. I’m Crystal.

And I’m Sunshine. Let’s get to it.

KPI? Sounds like an acronym. I feel an acronym coming, don’t you?

Yes.

She gives me this list of letters and I’m like, “I don’t know what that is.”

What are KPIs?

KPIs are key performance indicators. And their job is to measure the actual performance of your business.

Okay. I think I’m starting to get it.

Think of KPIs as your scoreboard for your business. It lets you know if you are winning, losing, if you need to be doing something you are not doing, or even if you need to stop doing something to be successful. So, these are metrics within your business so you can make informed business decisions moving forward.

Examples of KPIs

Let me give you a couple of examples of KPIs. Your total revenue is a KPI. Your margin is a KPI. Your conversion rate is a KPI. Your accounts receivable is a KPI. So, think about your business as an individual and as a whole. And what metrics do you need to track and measure to make sure you’re winning the game of business?

Wow. A whole scoreboard.

A whole scoreboard.

All right. Well, what’s your number one take away from today’s video? Leave us a comment. And thanks for watching.


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