94: The Ultimate Guide to Business KPIs

Summary: Dan explains why most business owners glance at numbers without using them well, and shares a complete KPI system to track what matters, focus your effort, and build a better life.

This one works really well as a video, as Dan does a walk through of a KPI spreadsheet. You can watch that here, or read the article (including visuals) here.

5 things you'll learn in this episode

• Why glancing at revenue or checking the bank balance is not the same as having a proper KPI process, and what changes when you build one.
• How to design the life you want before you set a single target, because your numbers should serve your life, not just your business.
• The exact spreadsheet structure I use, including how to set medium and long-term targets and keep things clean across months and years.
• A complete list of KPIs across marketing, sales, customers, revenue, finance, time, and even life quality, with equations for every single one.
• How to use the traffic light system so your priorities are immediately obvious every time you open the sheet.

Your action steps:

1. Write down what you want your life to look like before you build or update any KPI spreadsheet.
2. Set up a simple spreadsheet with a column for KPIs, a medium-term target, and a long-term target.
3. Manually pull your numbers from Xero, your CRM, and other sources at the end of each month.
4. Review your KPI sheet every week and identify the one or two numbers that most need your attention.
5. Apply the traffic light system so your biggest constraint is always easy to spot.