3 KPI's Every Health Service Business Needs to Track

As a small business, it's important to track your key performance indicators (KPI's) so you can see exactly where you're succeeding and where you need improvement. In the health service industry, there are three KPI's that are essential to track: income, client per revenue , and cash on hand. Let's take a closer look at each of these KPI's and how they can help you grow your business!

Income - Profitability KPI

Income is one of the most important KPIs for any business, and this is especially true in the health service industry. Income effectively determines how much money a business has available to reinvest in growth and expansion, and it also serves as a key indicator of overall business health. For these reasons, income tracking should be a top priority for any business owner or manager. There are a number of different ways to track income, but one of the most effective is through accounting. By keeping accurate records of all income and expenses, businesses can get a clear picture of their overall financial health. This information can then be used to make informed decisions about future growth and expansion. In short, tracking income is essential for any business that wants to scale and grow.

Revenue Per Client

As a small business owner, you know that clients are everything. Without them, your business wouldn't exist. That's why it's so important to attract the right clients, keep them happy and engaged, and grow your client base over time.

One of the best ways to track your progress in this area is to measure your client count and Revenue per client on a monthly, quarterly, and annual basis. This will help you see which marketing and sales efforts are working well and where you may need to focus more attention. Additionally, tracking these key performance indicators (KPIs) can help you make better decisions about pricing, product development, and more.

If you're not already tracking this data, now is the time to start. Your accounting software likely has built-in tools to help you do this, or you can hire a professional to help get you set up. Either way, taking this step will give you a clearer picture of your business's health and how you can continue to attract and retain clients.

Cash On Hand - Cash Flow KPI

For most small businesses, cash flow is a major concern. Living paycheck to paycheck makes it very difficult to save for unexpected expenses or plan for the future. That's why it's so important to track your cash on hand at all times. This will give you a good idea of how much money you have available to cover your operating expenses.

If you're in the health service industry, it's even more important to have a cash reserve. This is because unexpected events, such as an outbreak of a new disease, can quickly lead to a decrease in patient visits. Having 3 months of cash on hand can help you weather these types of storms.

Ultimately, the key to financial success is knowing your KPIs and making sure that your cash flow is healthy. By tracking your cash on hand and making sure you have enough reserves, you can protect your business from financial hardship.

At our firm, we understand the importance of tracking your key performance indicators (KPI’s). We want to help you hit your targets and exceed your goals. That’s why we offer tailored services that will equip you with the tools necessary to track your progress and measure your success. So what are you waiting for? Give us a call today and let us show you how we can help you achieve your business objectives. Thanks for reading!