Starting a business might often prove more challenging than anything you’ve taken on in your life. It is one rollercoaster of a ride, with plenty of ups and downs, but it is definitely worth the effort and time you put into it.
There are plenty of difficult challenges in the process of starting a business, from handling finances to managing people, not to mention marketing and trying to spread the word about your company. This is why one of the best things you could do to ensure your business runs smoothly and as planned is by keeping track of KPIs.
Here’s how you can do that.
What are KPIs?
Before we get into tracking, you need to understand what those are in the first place. KPIs stands for key performance indicators, and those are metrics used to measure the success of a business in achieving its targets.
You use KPIs to define the direction that your business is going to take, and later on how well you managed to do follow that direction. You can also use KPIs to track team or individual performances, and any other objectives that your business has in the short or long terms.
So, how can you track KPIs?
Since KPIs are the metrics you use to keep track of your goals, you need to have those in place. You have to understand what it is you expect out of your business and more importantly your people, and you will set your plan accordingly. So, start by setting goals, and make sure you follow the SMART method.
This means your goals have to be specific, measurable, attainable, relevant, and time-bound. Any goals you don’t set in accordance with those criteria will be hard to track, and it will also be difficult for your people to understand rather than achieve those goals.
Diversify Your Goals
You shouldn’t just set performance tracking KPIs; you need to diversify so your business could be on track from all angles, not just in terms of marketing and sales. One of the most important key performance indicators that a lot of businesses overlook has to do with safety, which is one of the key KPIs to track for any company. An example of safety KPIs is ‘near misses,’ which are situations that could have resulted in injury or worse.
Having such KPIs in place will help you predict the possibility of incidents and injuries, and more importantly, do your best to avoid them. You also need to have training KPIs to ensure that you have certain development programs in place to help your employees grow as professionals since they are the business’s most important asset.
Using Web Analytics
One of the most important tools you could use to track key performance indicators is web analytics. This will significantly help in the marketing efforts for your business, as any startup or small company should be very keen on gaining massive reach as soon as possible. Google Analytics provides you with plenty of data to track how your website is doing, from new subscribers to website performance and so much more.
You could also use that data to track sales if you have that as an option on your website –– like e-commerce stores. Learning to understand and track such data isn’t really easy, because there is an overwhelming amount of metrics and analytics to dive into. So, make sure you hire professionals who can help you track your web performance KPIs.
It is not just Google Analytics that you can leverage to track your online KPIs. You could also use Facebook Analytics, which is a great way for your marketing team to track your social media performance and how users are interacting with your business in that particular sphere, which is also quite important for reach and exposure.
Less Is More
When it comes to key performance indicators, less is more. There are software solutions and plenty of tools to help you track KPIs, but those aren’t the problem. If you set too many KPIs, things can and probably will get overwhelming, and you will not be able to track them all. So, make sure you only have the most basic KPIs that you need, and set only a few for each of your goals. This will help you track them successfully and efficiently.
Understanding how to set and track KPIs won’t happen overnight, and it will take you some time and a lot of effort. Once you get the hang of it, though, you will be able to set reasonable goals for your business, which will increase productivity and efficiency.