As a small business owner, it’s crucial to have a strong understanding of your financial health and performance. To do this, it’s important to track key performance indicators (KPIs) that give you a clear picture of your business’s strengths and weaknesses.

Here are some KPIs you should consider tracking in your small business:

Revenue: This is the most important metric for measuring your business’s success. By tracking your revenue over time, you can see how your business is performing and make informed decisions about future investments.

Gross profit margin: This is the amount of revenue you keep after subtracting the cost of goods sold. This KPI can give you a good sense of how much money you’re making from each sale, and help you identify areas where you can improve your pricing or cost structure.

Customer acquisition cost (CAC): This KPI measures how much it costs you to acquire a new customer. By tracking CAC, you can see whether your marketing and sales efforts are producing results and make adjustments accordingly.

Lifetime value (LTV) of a customer: This KPI measures the total amount of money you expect to make from a customer over the course of their relationship with your business. By tracking LTV, you can see whether your efforts to retain customers are paying off, and make changes to your customer service and loyalty programs if needed.

Employee satisfaction: This KPI measures how happy and engaged your employees are with their work. By tracking employee satisfaction, you can identify areas where you can improve the workplace culture and create a more positive and productive environment.

Website traffic: If you have an online presence, tracking website traffic is important for understanding how well your website is performing and attracting new customers.

By tracking these KPIs and others, you’ll be able to get a clear picture of your small business’s financial health and performance, and make informed decisions that drive growth and success. Regular monitoring and analysis of your KPIs can help you stay on top of your business’s finances and make informed decisions that will drive growth and success.