Know These Key Performance Indicators (KPIs) for Your Small Business


Key Performance Indicators (KPIs) are measuring tools that small business owners use to keep track of the progress in terms of profit and business growth. They let the entrepreneur know what they are doing right/wrong by showing the company’s health. These are the most crucial KPIs for small businesses that need to be monitored for ensuring constant growth.

Market share
Market share is a crucial financial KPI for small business. It shows how much control you have on the market. Knowing how well your company is doing relative to firms offering similar products, is crucial for sustainable growth. This is because you can adjust your strategy based on the competition to gain an edge.

Net profit
Net profit can be arrived at by subtracting your expenses from your revenue. It is one of the main business key performance indicators. Tracking it constantly every year tells you whether your business is profitable or not and by how much as well.

Net profit margin
The profit margin can be found by dividing net profit by revenue. For instance, if $10,000 was the revenue for the year and $4,000 was the net profit, then your profit margin is 40 percent, implying that you keep $0.40 for every dollar your company makes. Monitoring this KPI every year is essential because it tells you how efficiently you are using your revenue to generate profit.

Customer Acquisition Cost/ CAC
This indicator tells you how much you spend on getting a customer through your marketing efforts. CAC is a particularly important small business marketing KPI for internet-based companies. It gives them an insight into how to improve their marketing efforts.

Funnel analysis
In the age of the internet, small businesses have largely moved online for boosting revenue. This process measures the number of visitors who left a conversion without completing it. It helps you identify the reason that made a prospective buyer drop out of the conversation. Knowing these details can help you develop better sales strategies.

Quick ratio
Since cash flow is essential to prevent a small business from failing, you have to ask yourself this question frequently: Do I have enough money to cover my liabilities? To know the answer, add cash, marketable securities, and the amounts that you expect to arrive soon, and divide the sum by liabilities. Notably, a higher quick ratio signifies a healthy business that can take care of its present liabilities.

A customer’s lifetime value
This KPI tells you how much is a customer worth. You need this because it gives you an idea of how much to spend on sales/ marketing. Finding how much a customer is worth, and keeping your sales/marketing costs significantly lower, is a winning strategy.

If you work with clients on a retainer basis, you can determine this KPI by multiplying the average number of months a client has worked with you by their average retainer price.

If your collaboration is on a project-basis, finding the average number of projects you work on with them per month, and the costs involved will give you an insight into the client’s average lifetime value.

The bottom-line
Tracking of these KPIs can go a long way in keeping your business healthy while providing with the insights needed for further growth. Monitoring these KPIs does not have to be a cumbersome process. Knowing the most relevant KPIs for your business and using the right tools for applications such as business expense tracking can help you make informed decisions that drive business growth.

3 Steps for Tracking Your Business Monthly Expenses

Tracking Business Monthly Expenses

Monthly business expenses can be a big burden for small ventures. The biggest question is how to calculate business expenses without burninga hole in your pocket.Business expense tracking using a time tracking software can be your savior.

If you are running a small business without an operating expenses calculator, you are doing something wrong. Business expense tracking is the fundamental step of running a profitable business. The splurge on monthly business expenses can be quite draining.

We have compiled five steps for tracking your business monthly expenses that canlower your monthly costs.

Organize your monthly business expenses
You can save your money by organizing the expenditure. Having an organized expense report will give you an insight and clarity about your monthly costs. Your monthly business expense can be categorized into variable and fixed expenses. In terms of variable expenses, there are things that might not add as much value to your business as they do to your monthly business expense. You will find many morning bagels in your variable expenses that you can do without. The trick is to be absolutely sure about your team’s requirements. With fixed expenses, things are less likely to be modified. These are your utilities, debt, rent etc. There are many ways to organize your monthly business expenses:

• Hire a bookkeeper or better, a Certified Public Accountant
• Make spreadsheets with date, cost, category, and purpose.
• Digitize your receipts

Calculate business expenses
With an organized business expense report, you can easily calculate your business expenses. It will give you a concrete picture. Doing this categorically can give you a bird’s eyes view of the spendingpattern. The money habits of your business can provide you with great insight. It will also enableyou to get a sense of your cash flow. Calculate your business expenses, to the tee. Don’t leave out any aspect of your business expense. With receipts in hand, and an organized spread sheet you can simplify this process to a great extent. You can use a business expense calculator like CloudBooks for this. A lot of new businesses choose single-entry bookkeeping system for convenience. But as you grow, this system can prove be a faulty method to work with. Using an operating business calculator will make things easier for you to switch to double entry.

     Also Read: Everything You Need to Know about Tracking the Money Trail

Use a Time Tracking Software to record Expenses
Recording your business expenses puts you in control and saves you from unnecessary losses. Accountants and bookkeepers do this job well, but they are expensive and aren’t as efficient. This is why, it is highly recommended that you use a time tracking software. As a small business, it seems unfair to have your employees punch their work. But, it is important that you have an efficient system of invoicing for fair practice. Using a time tracking software will simplify project management, and you will be able to generate invoices timely. A time tracking software will actually even help your employees to generate billable hours down to the last minute. Since, this is an unavoidable and a recurring expense, accuracy matters a lot. At just $20 a month you can subscribe to the CloudBooks Time Tracking Software (agency level) to do this. It also comes with a 30-day free trial and a premium 24/7 dedicated support. More than employees, recording expenses via time tracking can be a great help to client billings. An automated software with ease of access, automatically notifies you of due payments.

Also Read: 10 Tips for Small Businesses to Track Their Expenses

The Telemedicine Advantages You Need To Know!

The health area is one of those that most benefits from technological advances, which contribute to the improvement of knowledge and techniques related to the promotion, prevention, and recovery of patients’ health.

In this context, we can” rel=”dofollow”>highlight here telemedicine as one of the main innovations of recent times. The use of telecommunications and information technologies directed to the health area has been beneficial in modifying the relationship between health professionals and patients.

But, after all, do you know what it is and what are the advantages of telemedicine? Follow the text to find out!

What is telemedicine?

It consists of a relatively new aspect of medicine, which concerns the provision of information and health care for patients who are distant. Medical actions are carried out remotely through the use of information and telecommunications technologies.

The practice of telemedicine is carried out using different instruments, which allow remote communication between healthcare professionals and patients or between healthcare professionals. In this way, medical knowledge and assistance can be taken anywhere, regardless of their physical location.

Operation in the practice of telemedicine includes three main areas:

  • education: training of health professionals and exchange of information through the media (videoconferences, lectures, and online courses);
  • teleassistance: monitoring patients at a distance, by sending exams and clinical history data;
  • issuance of reports: online verification of examinations performed in other locations and issuance of reports of these examinations.

What are the advantages of telemedicine?

Now that you understand what telemedicine is and how it works in practice, we have listed its main advantages.

Time And Process Optimization

As we have seen, telemedicine allows all-important patient data, including information about physical examination and test results, to be stored in the cloud. With this, doctors and other health professionals have easy and quick access to all the information necessary for an assessment of their health status.

Exam results delivered in physical documents would take more days to reach the health facilities of the doctors who do their assessment.

There is a great optimization of the professionals’ time, as this information can be accessed at any time and is found much faster, due to the organization that online storage allows. The time spent searching and consulting information in documents stored on paper was much longer.

Remote Reports

Among the great advantages of telemedicine is also the possibility of sending reports from a distance. Thus, the patient examines a specific location; the exam is sent to a specialist elsewhere; this specialist evaluates the exam and sends the report online, without the need to travel to find the patient.

It is necessary to have doctors at both ends, that is, both at the clinic requesting the exam and at the place where the report is issued. The interesting thing is that these doctors do not need to be in the same place.

Remote reports can be performed for imaging exams (x-ray, magnetic resonance, computed tomography), electrocardiogram, electroencephalogram, dermatological examination, among others.

The realization of remote reports allows:

  • agility in delivering results to patients, as specialists do not need to be in place to issue the report;
  • higher quality in the evaluation of the exam, since the report is sent to specialists in the area;
  • lower cost, since it is not necessary to have doctors of various specialties at the place of the exam;
  • easy storage, as it eliminates the need for physical space to store reports;
  • greater security in the storage of reports.

Greater Service Capacity

As we have already pointed out, the use of telemedicine brings optimization of the use of time in health establishments, through the ease of sending and accessing patient health information.

Also, making test results and other information available online allows more than one professional to have access to the material at the same time, which reduces the total service time. Another factor is that distance reports are issued more quickly than reports made in person.

All of these points contribute to the service that adopts telemedicine to have a greater service capacity, related to greater agility of internal processes.

Ease Of Information Exchange

In the health area, it is very common for professionals to feel the need to discuss patient cases with other colleagues in the area, to close a diagnosis, or obtain a second opinion. However prepared the doctor is, there will always be situations in which the sum of more knowledge is needed.

In this sense, he can take advantage of one of the advantages of telemedicine, which is the ease in exchanging information between health professionals, since any exam or report can be sent and accessed quickly from any device with internet access.

The technologies used in telemedicine also allow doctors and patients to exchange information more easily through:

  • cell phone messages;
  • providing medical recommendations at a distance;
  • the patient’s doubts to the doctor;
  • results of the new exams.

This practice brings greater involvement of the patient with his care, in addition to bringing health professionals and patients closer together.

Improvement Of Professionals

As we have seen, one aspect of telemedicine is tele-education. Through it, health professionals from any part of the world can have access to education in the area, which allows the advancement and improvement of the assistance provided to patients in the locality.

For some time, the lack of time and financial resources were obstacles to updating the knowledge of health professionals, especially for those who work in remote or isolated areas. Telemedicine allows these professionals to access online courses, lectures, workshops, and updates, without having to travel.

The most current and advanced knowledge regarding medicines,” rel=”dofollow”>surgical techniques, diagnostic methods, and other knowledge can be shared quickly and practically worldwide.

Knowing the advantages of telemedicine is as important as other medicine so that due consideration is given to this current aspect of medicine, which is the present and also the future of the health care system.