Are you tracking KPIs? Also known by their real name, “key performance indicators,” KPIs are the ticket to determining how your small business is performing on its quest to reach the goals you’ve set.

Whenever I bring this topic up in our Entrepreneurs Forever peer groups for small business owners, I get at least a few protests of “These are for big companies and big organizations. I’m small!”

Regardless of size, if you’re trying to reach goals, KPIs are one of the best ways you can stay on track to meet them.

What Is a Key Performance Indicator? 

Key Performance Indicators are incremental steps you can measure while trying to reach bigger business goals. 

Small Business KPI Example:

Goal: $6,000 per month business revenue by Dec 31

• KPI: sign 2 or more new clients totalling $2,500 per month
• KPI: Increase hourly rate for new clients to $150
• KPI: sustain >60% of income through monthly retainers

Goal: Grow social media following in 2024

• KPI: Increase Instagram followers by 10% each month 
• KPI: Start TikTok account
• KPI: Engage positively with three followers at least 1x/month on Facebook and Instagram

Goal: Sell more of product A to email audience by July 2024

• KPI: Reach 20% email click-thru rate to store for product A messages

Each of these KPIs is a tactical step on you’re going to reaching a bigger goal, which is part of the beauty of KPIs — they encourage you to use and compare tactics on your quest for growth.

Try the Key Performance Indicators tracker for small businesses

We’ve put together a KPI Tracker that you can use to identify the metrics associated with KPIs for your business (fill out the form on this page to download). Since every business is different, you should modify the template to fit your business and your goals.

Entrepreneurs Forever members: You will discuss KPIs in some of your peer group meetings. By talking to other business owners, you may determine additional key performance indicators that contribute to reaching your overall goal.

Not a member? Learn about joining Entrepreneurs Forever (it’s FREE for small business owners). And be sure to watch for upcoming Forever Forward events to help you learn more about growing and running a business.