Do you want to know the key business metrics you should track?
Metrics are an extremely important part of the business. You don’t know what direction you are heading in unless you know your numbers. You don’t know where you are losing without metrics. They say “what gets measured gets improved.” So, if you want your business to keep getting better, you had better be tracking.
It is also true that there are many vanity metrics which many entrepreneurs and businesses waste an enormous amount of time and money on. This is often nothing more than a drain on your business.
Then there are vital metrics to watch and constantly work on. Here are some of those key business metrics you should track.
When looking into the key business metrics you should track, keep in mind that growth is often the number one metric everyone wants to know about.
Potential angel investors, potential acquirers, financiers, and others all want to know your growth rate. For early-stage startups, it is probably one of the most important numbers.
Depending on your stage in business, this may be stated week over week, monthly, quarterly or annually.
There are different metrics for measuring and displaying growth too. These may include:
- Sales volume
- Team size and hires
When you are fundraising for example growth is everything. Keep in mind that in fundraising storytelling is everything. In this regard for a winning pitch deck to help you here, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.
Revenue Per Employee
A less common but very insightful metric is revenue or profit per employee as part of the key business metrics you should track. Savvy investors and analysts see this as one of the most telling figures about a company. It shows how profitable it is and can be, how flexible and strong the company is financially, and how it compares to others.
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