Top Five KPIs for Small Businesses

Many performance indicators are available for organisations, but small businesses need more time and resources to monitor a long list of metrics. This course presents five KPIs that will work in all circumstances and can be used by a small business to manage their performance effectively and make decisions that will help them improve. This starter set of five measures tackles the core financial and operational elements of company success.

After a brief history of performance measurement, we look at sales income and contribution, what they comprise, and how they relate to one another. Following that, we investigate available cash flow and Acid Test Ratio, which indicates if the company's urgent liabilities can be met. Time to serve customers, which identifies problems early, giving time to resolve them, and customer feedback, along with various ways to collect it, are then described.

Depending on the organisation's industry or sector, there may be additional measures that are also useful, and many of those are addressed in this course as well. You'll explore a case study in which all five key performance indicators are implemented and analysed. This course is designed to help owners and managers of small businesses, business management students, and accounts and finance staff supporting small businesses to measure success and identify areas requiring improvements.