The power of KPIs: which figures you really need to monitor
September 2025 - Many entrepreneurs still run their businesses based primarily on gut feeling. That may work in the early stages, but as your business grows, you need guidance to make the right decisions. Key Performance Indicators (KPIs) can help you with this: they are measurable figures that show whether you are on track to achieve your goals. But which KPIs are really worth tracking?
Why KPIs are important
A KPI provides insight into your company's performance. Not every figure is a KPI: you only choose those figures that directly contribute to your strategic objectives. Do you want to become more profitable, grow your turnover or increase customer satisfaction? Then you determine KPIs that make those objectives concretely measurable.
KPIs every entrepreneur should track
Revenue growth
How is your revenue evolving month after month or year after year? This immediately shows whether your strategy is working.
Gross margin
Higher revenue means little if your margin is too low. The gross margin provides insight into the profit you have left after deducting direct costs.
Cash flow
Even profitable companies sometimes go bankrupt because they have too little cash available. Keeping an eye on your cash flow is crucial.
Customer acquisition costs (CAC)
How much does it cost to acquire a new customer? If this figure rises, you need to review your marketing or sales strategy.
Customer Lifetime Value (CLV)
How much does a customer generate on average as long as they remain a customer? This figure helps you determine how much you can invest in new customers.
Customer satisfaction
Measured through surveys, Net Promoter Score (NPS) or reviews. Satisfied customers stay longer and are more likely to recommend your company.
How do you get started?
Don't start with twenty KPIs at once. Choose a maximum of five that best fit your current business goals. Put them in a simple dashboard (Excel or specialised software) and discuss them regularly with your team.
KPIs are more than just dry figures: they are the compass for your business. By consistently measuring and managing the right KPIs, you avoid making decisions based on gut feeling or random circumstances. This allows you to work towards sustainable growth in a targeted manner.
