KPIs for Small Business

Let’s talk about key performance indicators (KPI’s) for small businesses and how to get them. Want to grow your business? You need to track certain metrics. But which ones? And how do you track them? And can your staff help? (YES!!!) Keep reading to learn about all of this and get help setting up a dashboard for your business that will help you and your leaders keep your business growing.

Tracking the right data for your business is the fastest way to achieving your goals and profitability. There are some standard pet industry metrics that we recommend you start with if you are new to KPI’s. Start with a few and then add more as you get your system and dashboard established. It’s common for small business owners to delegate tracking some measures to your leadership team. You’ll also want to modify your KPI’s as your business objectives change.

Our top three measures for pet care service businesses are:

• Profit % – a goal for most businesses are to maximize profits to monthly when you review your P&L report divide your operating profit (revenue less operating expenses) by total revenue to calculate your profit percentage
• Payroll as % of Revenue – we’ve found the biggest issue holding many pet businesses from higher profits is high payroll costs. Another easy calculation from your monthly P&L report is to calculate your total payroll costs by total revenue.
• Revenue per Pet – this is a great KPI that when increased will lead to higher profits. To calculate this metric divide your total revenue for the month by the total number of pets serviced. 

One other area where tracking KPI is recommended is related to your marketing. Most businesses invest in advertising and it’s important to know if your investment is paying off with additional clients or additional sales. Consider adding these two measures to your dashboard for your digital ads and email marketing.

• Ads seen or open rate of emails 
• Click through rate

Be sure to watch our video where we share pet industry standards for these metrics and share why adding cccupancy % by service can boost profits. We also share how targeted marketing and upsells of low priced items are big revenue and profit boosts. You will likely be surprised at the extra revenue you can earn without additional staff or expenses. The best part is your KPI’s will let you know right away if the strategy is producing results!