KPIs - Key Performance Indicators are pieces of measurable data that breakdown aspects of the operational side of your business in order to measure your progress.

BLOG: Which numbers are important?

These include:

  • Data surrounding how many staff you have and how ‘productive’ they are in terms of selling goods or services

  • How many clients or customers you have and how much each of these spends with you

  • Data surrounding cashflow and the collection of bad debts or even debts you may have to ‘write off’

  • Revenue generated by the different good and services you offer

Benchmarking - is vital when establishing the performance of your business. Benchmarking compares your important KPIs to those of businesses with similar operations. You can then ask yourself:

  • Are your operating costs as low as similar businesses?

  • Is your debtor management plan working as effectively as those of your competitors?

  • Is your staff productivity comparable?

  • Benchmarking can provide the not so obvious solutions to a number of small margins which in turn, when tweaked, may dramatically improve your bottom line