In today’s issue…

We’ll be diving into the world of key performance indicators, otherwise known as KPIs. I talked about this briefly during my metric masterclass over at The Bossable University. Which I highly suggest you check out if you’re interested in learning how to use the numbers of your business to your advantage! But I thought I’d go into a bit more detail on the topic during this newsletter.

So we’ll be discussing…

• What KPIs are and the benefits of using them
• How to set them
• And finally, how to check in on your KPIs and use your findings for growth

The Basics Of KPIs – And The Downside Of Not Using Them

KPIs, also known as key performance indicators, are metrics that relate to certain goals within your business. So essentially, KPIs are how you measure and assess how close you are to hitting your objectives! Obviously, these are extremely important to set and monitor.

Because if you don’t set and use KPIs in your business, then you’re actually making growth harder to obtain. And you’ll probably experience things like…

• Confusion about how your business is performing
• Indecision about future plans and changes you want to make to your company
• And even less growth in the future, because of the things we just discussed

Don’t worry though, KPIs are really easy to get the hang of. And I’m going to teach you how to do so right now…

How To Set KPIs

Setting a KPI is a pretty straightforward process, as long as you have some current goals you’re working towards. And if you don’t, you’ll need to start by creating those goals before you ever worry about KPIs!

For instance, if your goal is to reach a certain amount of revenue then your KPI could be your monthly sales. Whereas, if the goal is to reach “x” amount of followers then your KPI might be social media views, engagement, etc…

The key is to make sure that your indicator is very specific and very measurable! So try to avoid vague indicators like satisfaction survey results, or recent reviews. As these things are more subjective. And instead, aim for statistics and metrics that are rooted in factual information. Like sales reports, or traffic to a website!

So, to pull all of this together… the steps for creating KPIs are as follows…

• Step one is to set some specific, measurable goals for your business!
• Step two is to choose some metrics that relate to those goals, and set them as your KPIs.

And that’s it… just two steps! Pretty simple right? So now let’s move onto how to actually use your brand new performance indicators.

How To Use KPIs

Once you’ve set your KPIs, you’ll want to create a schedule for checking them. For example, if the KPI is related to a short term goal then you could check it quarterly; but if it was set to target a long term goal then you could check it on an annual basis instead!

During these check-ins, you essentially just want to take a look at the stats of your KPI and use them to determine whether or not your work has brought you closer to your goal. Furthermore, you’ll want to see how much of a change has occurred (in either direction).

So let’s say that your goal was to increase revenue, and thus, your KPI was your monthly sales. If you make some changes to your business, like adding a new product… then when you do your quarterly KPI check-in you’ll need to compare your current sales to those from three months ago.

• If they’ve gone up by a considerable amount, then what you’re doing is working. And maybe you can consider releasing another product to get you even closer to your goal, or perhaps you could even promote the product you’ve already released a bit more.
• If they’ve only gone up slightly then you might need to try something else, and then gauge those results during your next check-in.
• And if they’ve gone down, you may need to spend some time reviewing all your stats a bit more! So that you can determine what went wrong, and where…

As you can see, this is where the beauty of KPIs comes into play. Because it encourages you to pay attention to changes in your metrics that you may’ve otherwise ignored! And this can open up a whole new world of knowledge and ideas, which will ultimately help you grow your business and reach your goals even faster.

Three extra resources for all my Bossables!

Now, as a bonus for those of you who made it to the end of this newsletter, I want to share three resources I feel could benefit you in your business journey!

🤑 First off, we have a popular video about sales techniques from Sales Insight Lab on YouTube!

🧐 Then we have an article by Forbes that talks about how to find and fix issues within your business!

🔊 And lastly, we have this new podcast episode by Diary Of A CEO; which is all about becoming a millionaire!

Thanks for reading,

Mia XOXO