Business Key Performance Indicators For Online Entrepreneurs (SUCCESS SECRETS!)

What is a key performance indicator in business? How is it different than a metric and why in the world do you need them to grow your business?

By the end of this video, you'll know why you must have key performance indicators to grow your business and how to select the best one for you for the best entrepreneurship strategy and systems advice. Subscribe to my channel below and hit the bell to be notified. When I post a video, every single Tuesday.

I've worked with hundreds of businesses to track measure and analyze their business data and analytics to accelerate their growth. In fact, for over a decade, I've been taking my clients through the same exact process to measure performance and growth in smart, strategic, and efficient ways.

Why is this important? Because when you know where you are right now and where you want to go finding the quickest, most effective path is easy, but when you don't know where you are or where you're going, you're flying blind and who knows where you'll end up!

You might be wondering what is a key performance indicator or KPI, and how is it different than a metric?

First let's start with a metric.

A metric is a quantitative or data-based result, and it's usually some sort of number or percentage a KPI is a type or subset of a metric. What I'm saying is that all KPIs or metrics, but not all metrics are KPIs.

Key performance indicators are a small handful of metrics.

Usually only three to six. At most that you look at together to give you the entire high level picture of how your business is performing. These three to five metrics are the most important metrics in your business. The ones that you and your team should live, breathe, and be guided by at the highest level, your KPIs, give you a clear picture of the health of your business and give you clues as to how you're tracking against fully realizing your business, vision and values. The rest of the non KPI metrics.

You may look at, give you guidance on specific areas within your business that need to be looked at or optimized, but are not the view of the full business, quite like your KPIs do so now that you know what a KPI is and how it's different than a metric.

I'm going to take you through my four step process to develop and select KPIs for your business. I'll take you through an example along the way and make sure you stick around for the bonus tip at the end.

Step one, identify your smart goals for the highest level of your business.

Remember smart goals, specific, measurable, attainable, relevant, and time-based make sure that you've identified those smart goals for your business for the next 90 days to year in the future. They usually are based around your company, vision and values.

And what is most important to you as an entrepreneur and your business? They could be around financials or revenue products, launches customers, efficiency, engagement, gosh, the list could go on. All right, got them great. Now let's move on to step two.

Step two is listing all the ways that you could quantify each of those goals using metrics.

So something like revenue or financial goals is relatively easy to quantify, but what about something around customer engagement?

Well, you could quantify that with a metric like customer lifetime value or net promoter score, you can measure social media, likes and comments, transactions per customer, or you can plan a system to regularly survey your customers to create your own metric.

Now's the time to get creative. The possibilities are nearly endless, but I want you to try and brainstorm as many ways as you can to quantify your goals, comment below. And tell me one of your best metrics that you came up with to quantify your business goals. During this metrics brainstorm, don't be shy. Tell me below

Step three for each goal pick at most one to two metrics that alone could tell you exactly how you're doing against that business goal.

So if you're a new entrepreneur who just wants to make money, your metric might be revenue, though. I will say that I discourage seasoned entrepreneurs from just using revenue as a KPI, perhaps something like net profit or profitability is a better measure for you because it also takes into account operations and expenses.

Again, we're trying to get a picture of the overall health of the business. Going back to my customer engagement example, I love the KPI of customer lifetime value, unless your business is a one purchase only and forever type of thing. It's a good one to at least consider because if customers continue to come back and purchase from you over and over, then, you know that they're engaged with you and your brand.

A bad example of a KPI would be something like email open rate or Instagram likes because they don't give you a full view of your business. By the time you do this for all of your goals, you should be at no more than eight to 10 KPIs. And honestly, I want to challenge you to get down even further to three to six total KPIs, if possible.

Now the final step is to get a right now measurement of that KPI metric in your business as a whole.

What is that number right now? This is your benchmark and it is equally as important as the KPI itself, if not more. So this may be a pain to figure out, depending on what KPIs you choose. But if you can't measure it right now, how are you going to be able to use it as a KPI in the future?

If your KPI is revenue, the answer might just be zero. If your metric is profitability, the answer might be negative. Customer lifetime value could be four 99, but that's all okay. Because the entire point of choosing KPIs and benchmarking them is so that you can measure your improvement against them. Just make sure that the KPI is accurate and honest as you can be, and you are set

So here's your bonus tip. Now that you have your benchmarks and KPIs, make sure you measure them going forward and make changes in your business to improve them.

And as you make those changes, make sure that you are optimizing towards improving those KPIs. Well, KPIs can change as your business grows and evolves. Try not to change them too often, unless they don't fit your business at all anymore. Because if you change them too often, then you won't be able to measure your progress over time, which is critical.

So now, you know what key performance indicators or KPIs are and how you can use them to rock your business growth. If you're ready to finally get a handle on your tricks. So you can make data driven decisions and growing your business, check out my free training launch metrics magic linked below in the description.

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I can't wait to hear what you think and don't forget to check out these related videos about systems and processes on my channel.

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