Running a business means wearing a lot of hats, but the finance one?
That’s the one most owners wish they could pass to someone else.
And yet, ignoring your numbers is like trying to navigate a road trip without a satnav. You might make some progress, but chances are, you’ll miss key turns, waste fuel, or end up miles off course.
The truth is, you don’t need to be a finance expert. But you do need to understand what your numbers are telling you.
Because when you track the right things consistently, you gain clarity, confidence, and control.
First, What Is a KPI?
A Key Performance Indicator (KPI) is simply a metric that tells you how well your business is performing against your goals.
And here’s the thing: there’s no one-size-fits-all list. The right KPIs for your business will depend on:
- Your industry or business model
- Your growth stage
- Your short-term goals and long-term vision
- How you deliver services (e.g. time-based, project-based, retainer)
- What success looks like for you
The key is not to copy someone else’s dashboard but to create your own list of meaningful numbers that drive decision-making and show progress in your business.
Why KPIs Matter (Beyond the Numbers)
Tracking KPIs isn’t about collecting data for the sake of it. It’s about bringing clarity, confidence, and control into your business.
Think of it like this:
KPIs are your compass. Without them, you’re guessing. With them, you’re steering.
Done well, they help you:
- Spot warning signs early (e.g. rising costs, slowing sales)
- Measure progress towards your goals
- Align team effort and focus
- Make decisions based on facts—not fear or gut feel
- Feel more in control of your time, money, and energy
And remember as Peter Drucker famously said “what gets measured gets managed”. When you keep a close eye on a number, it naturally improves because your focus and action follow it.
Weekly vs Monthly: A Rhythm That Works
There are two speeds to running a business:
- Weekly – staying responsive, checking the pulse
- Monthly – reviewing the bigger picture, adjusting strategy
Both matter. Here’s how we recommend splitting them:
Weekly KPIs (Your Quick Pulse Check)
These are quick check-in numbers that help you stay on top of what’s happening in your business day-to-day. You’re not looking for deep analysis here just a clear snapshot so you can spot issues early and take action.
- Cash in the bank
- Money in/out this week
- New leads or enquiries
- Sales made or invoices sent
- Payments received (and overdue)
- Hours worked vs capacity (especially for service-based businesses)
These help you stay proactive. If cash is dipping, it might be time to chase payments. If leads have dropped, maybe your marketing needs attention.
Tip: Pick just 3–5 weekly KPIs to start. Keep it simple and review them at the same time each week.
Monthly KPIs (Your Strategy Dashboard)
Monthly KPIs give you a broader perspective on how your business is performing. You’re not just collecting numbers; you’re looking for patterns that reveal what’s working and what needs attention.
Some solid monthly KPIs to consider:
- Revenue
- Gross and net profit
- Gross profit margin (%)
- Overheads (fixed and variable)
- Cash flow movement (did your bank balance increase or shrink?)
- Debtor days (how long clients take to pay)
- Conversion rates (leads to customers)
- Customer retention or churn
- Average transaction value or client spend.
What matters most is how these figures move over time.
Let’s say your profit margin this month is 28%. Is that good?
Hard to say—unless you know it was:
32% last month
30% the month before
And 35% six months ago
Now you have a story: your margin is quietly eroding. You can dig into why, rising costs? discounting? over-servicing?
Consistent measurement gives you insight, not just information.
Align KPIs to Decisions (Not Just Reports)
KPIs are most powerful when tied to goals and actions.
Here’s what that looks like:
| Your Goal | KPI to Track | Helps You Decide |
| Take home more money | Net profit, owner’s drawings | Is the business profitable enough to support this? |
| Hire help or outsource | Cash flow, profit margin, revenue trend | Can I afford it? Will it pay off? |
| Work fewer hours | Hours worked, effective hourly rate | Is my time being used profitably? |
| Improve cash flow | Debtor days, overheads, cash movement | Where is money leaking or delayed? |
| Scale the business | Monthly recurring revenue, client churn | Are we retaining and growing? |
This is why generic dashboards don’t work. The KPIs that matter to your goals are the ones you should track.
Keep It Simple, Keep It Regular
If you’re new to tracking KPIs, here’s how to get started:
- Pick 3 weekly and 3–5 monthly KPIs that tie to your current business goals
- Set a reminder to review them on the same day each week/month
- Use a simple spreadsheet or dashboard—nothing fancy needed
- Record your KPIs in the same format each time (e.g. %, £, count)
- Look for trends over time, not just highs or lows
- Review and adjust KPIs every 3–6 months as your business evolves
Tracking KPIs consistently is one of the simplest ways to run your business with more confidence and clarity.
But we know it can feel overwhelming at first.
That’s why we help ambitious owners like you not just understand your numbers—but use them to grow, simplify, and take back your time.
If you’d like help creating a KPI dashboard, working out which numbers to track, or turning insights into action, we’re just a message away.
