Top Business Metrics Every Company Should Know


How do you measure your company’s performance? Well, the way not to do it is by following your gut feeling. Running a successful business entails thorough analysis on the work, sales, and financial results. And this is perfectly done if you choose to track the relevant business metrics.

Business metrics, also called key performance indicators (KPIs) display a measurable value that shows the progress of a company’s business goals. They are mostly tracked on a KPI dashboard, and indicate whether a company has attained its goals is a planned time frame.

Of course, there are hundreds of different key performance indicator examples, but this simple guide will only take you through two. Keep on reading to uncover more!

Sales Revenue

Sales revenue tells a lot of things about your company. Month-over-month sales results show whether people are interested in buying your product or service, are your marketing efforts paying off, are you still in the competition, and much more. While evaluating your sales revenue and setting clear goals, it is vital to remember that sales results are affected by multiple other factors.

Net Profit Margin

Net Profit Margin shows how efficient your company is when it comes to generating profit compared to its revenue. This number mostly tells you how big a sum of each dollar earned translates into profits. Actually, it is a good way to predict long-term business growth, and see whether or not your income exceeded the costs of running the business.

To measure this business metric, you simply have to calculate your monthly revenue and reduce all the sales expense. You can easily improve your company’s Net Profit Margin by increasing your revenue. The best way to go about this is by raising the price of your products or services and selling more.

Alternatively, you can choose to lower your sales and production costs while keeping up with the competition. Keep in mind these tactics require thorough market research and long-term business strategy. Also, there is no way you can get done with these tactics overnight since they require time.