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Metrics That Matter: 5 KPIs Every Small Business Should Track for Growth

Outline the most critical key performance indicators (KPIs) for small businesses (e.g., gross profit margin, customer acquisition cost, and revenue growth rate). Tips on how to measure and improve these KPIs effectively.

Melissa Sevcik

11/21/20241 min read

a person swimming in the water near a coral reef
a person swimming in the water near a coral reef

Metrics That Matter: 5 KPIs Every Small Business Should Track for Growth

To grow your business, you need to track what matters most. Here are five key performance indicators (KPIs) every small business should monitor:

  1. Gross Profit Margin: Are your prices covering costs and driving profit?

  2. Cash Flow: Is money flowing in faster than it’s flowing out?

  3. Customer Acquisition Cost (CAC): Are you spending too much to gain new customers?

  4. Revenue Growth Rate: Is your business growing steadily?

  5. Net Promoter Score (NPS): Are your customers happy enough to recommend you?

Regularly tracking these KPIs helps you stay focused on your goals, adjust strategies, and set your business up for lasting success.