For many small businesses, Key Performance Indicators can seem meaningless and sometimes overwhelming. However, Key Performance Indicators, or KPI's, are crucial to keep track of company and business goals, and help you meet those goals. For girl bosses not knowing where to start with KPI's, we put together this handy guide with free KPI templates so you can start conquering all your business dreams!
What Are KPI's?
Key Performance Indicators, or KPI's as they are most commonly known as, are ways to measure success in business. KPI's are generally unique to each business, as each business has different goals they need to reach.
How Do I Use KPI's?
KPI's are generally measured by three categories: optimal, acceptable and unacceptable. For each goal of your business, whether it be regarding sales, marketing, or something else entirely, you write out what would be the optimal, acceptable and unacceptable result of each goal, and how you will achieve the optimal KPI. KPI's should also have a realistic time frame for when the optimal result is hoped to be reached.
So Why Is This Important?
Listing out what an optimal, acceptable, and unacceptable result would be is important to see what you need to achieve in the month, quarter or even year ahead. It is also important to track what you will do and what you have done to achieve future and previous results. It is helpful to know what works, what doesn't and what you can change in the future to try and reach an Optimal KPI. KPI's also help open up a line of communication with business partners, colleagues and employees to see what their goals and values within the company lie, how they expect to achieve them, and how you can help bring those goals to life.
Ok, Sounds Great! How Do I Use The Template?
Starting with the list, you can write in the month/quarter/year that you are tracking these KPI's. You can also write in what 'category' you would like these KPI's to fall under (e.g. sales, marketing, revenue, financial, etc.) There is also a section for you to write the due date of this KPI. The next page prompts you to fill out how you will achieve this KPI. Once you have achieved this KPI, there is space to explain what you did, and how/if you would do it differently next time. The last page is a graph, which is for each individual KPI to track its results over time. We have included an example of each page for you to see how it would be filled out.
Lastly, don't be afraid of KPI's or feel like they are useless. Used properly they can help grow a business and really help identify goals and changes that need to be made within a business. Good luck!
You can download your free template pack here!