Key Performing Indicators: What You Need to Know
Most people toy with the idea of becoming an entrepreneur, but the simple fact is that most people never dive in and make the transition. It takes guts, determination and a real vision to be a successful entrepreneur. That’s why most people shy away from entering the ranks. We tend to be taught from a young age to be risk adverse or even highly risk adverse. But the fact of the matter is that the rewards, such as being your own boss, do come with risks.
Being a Real Entrepreneur Means Moving Beyond Illusions
Some people will spend months or even years pretending and even tricking themselves into believing that they want to become an entrepreneur, but deep down they know the risk is too much for their liking. The illusion may even go so far as to create a business and printing up fancy business cards with “CEO” and/or “President” on them.
But at the end of the day, it is just not real; it is a sad illusion. You are not like them. You’ve made it this far and that makes all the difference. There is, however, one last point you need to understand. Let’s take a closer look.
KPIs are a Must-Have for Any Successful Entrepreneur, Period
The bottom line is that you need a dashboard with clearly defined key performance indicators (KPIs) if you are to become a successful entrepreneur. In order to create and operate a business, you must be have a dashboard with KPIs. This dashboard with KPIs will allow you to monitor on an hourly, daily, weekly, monthly, quarterly and yearly basis the key information you need to know to chart your success and growth.
Some KPIs need to be reviewed more frequently than others. Adding yet another layer of complexity is the fact that some KPIs are far harder to calculate than others. That stated, however, it is almost impossible to create a successful company without KPIs that are easy to view and understand on demand.
Information is power; without information about the current status of your business, there is too much opportunity for confusion, chaos and ultimately failure. KPIs are your friends, pure and simple.
There is No Replacement for KPIs
Not too surprisingly, your KPIs will fluctuate as your business grows and changes. Yet this growth and change will never negate the fact that you need KPIs. Early on the vast majority of entrepreneurs discover that that their most important KPI is the one that relates to their sales funnel and the number of people they are able to reach and push through the funnel to generate sales.
Again, your business will change, grow and evolve, yet so must your KPIs. Make sure that this data is consistently adapting alongside your business. A failure to make sure that your KPIs are adapting with your business will ultimately lead to your undoing. Summed up another way, there is no replacing the value of KPIs, so embrace them and never let them go!