What Are the Key Performance Indicators (KPIs) for Entrepreneurs?
Key Performance Indicators (KPIs) are specific metrics that entrepreneurs use to gauge the performance of their business. Some of the most common KPIs include:
1. Revenue Growth: This measures the increase in sales over a specific period and is a direct indicator of business growth. 2. Customer Acquisition Cost (CAC): This calculates the cost incurred in acquiring a new customer and is crucial for understanding the efficiency of marketing and sales efforts. 3. Customer Lifetime Value (CLV): This estimates the total revenue a business can expect from a single customer over the lifetime of their relationship. 4. Net Profit Margin: This measures how much profit is generated as a percentage of revenue, indicating overall profitability. 5. Employee Productivity: This assesses the output of employees relative to input, helping to identify areas where efficiency can be improved.