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On Business Data & KPI’s

I don’t always know which financial metrics I should be paying attention to the most. How do I know that I’m using the right data to make decisions in my business?

Metrics can get complicated – especially when technology and apps give us the capability to measure nearly every element of our business operation.  That technology can inundate us with reports to the point that we don’t know which numbers to look at.  Fighter pilots refer to this as scope lock (becoming overwhelmed by data in the cockpit to the point that you fly right into the side of a mountain).  The most important metrics in your business are those that keep you focused on the basics; the ones that tell you if you’re up or down. The prevailing number that matters more than everything is profitability.  This includes your gross profit, net profit, and the specific profit margins of your products or services.  After all, this is the money you will wind up taking home – what could be more important than that?