As we dive into 2025, it’s time to focus on the numbers that truly matter for your business. Tracking the right Key Performance Indicators (KPIs) helps you stay aligned with your goals, spot opportunities, and make data-driven decisions.

Here are some KPIs to watch this year, with examples to help you apply them:

• Revenue Growth
  • Example: If your revenue was $50,000 last quarter and it’s $55,000 this quarter, that’s a 10% growth!
• Net Profit Margin
  • Example: If your business earned $100,000 and your expenses totaled $80,000, your profit margin is 20%.
• Customer Acquisition Cost (CAC)
  • Example: If you spent $1,000 on marketing and gained 10 customers, your CAC is $100 per customer.
• Customer Retention Rate
  • Example: If you had 100 customers at the start of the year and retained 90 by the end, your retention rate is 90%.
• Accounts Receivable Turnover
  • Example: If your annual sales on credit are $120,000 and your average accounts receivable is $20,000, your turnover rate is 6—meaning you collect payments every two months.
• Operating Cash Flow
  • Example: If your inflows (sales and other income) total $50,000 and outflows (expenses) are $30,000, your cash flow is $20,000—positive and healthy!
• Inventory Turnover (if applicable)
  • Example: If you sold $10,000 worth of inventory and your average stock value is $2,000, your turnover rate is 5, meaning you’re moving inventory efficiently.

These metrics provide a clear snapshot of your business health and help you plan for sustainable growth.