How do you use Key Proforance Indicators?

How do you measure the success of your business? How do you find out where it’s performing well and where there’s room for improvement? KPIs (key performance indicators) can help you. Here’s how they work.

KPIs are useful tools to help you measure the performance of your business. But you need to use them sensibly.

Using KPIs can give you better business insight

Doctors use KPIs to measure our health and wellbeing. Our body mass index (BMI), blood pressure and cholesterol level are all KPIs that have a specific medical meaning. In the same way, business KPIs carry specific meanings too. Debt/equity ratio, receivables days and gross profit percentage are all measures that have specific meanings in a business context.

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Key performance indicators are used by businesses of all sizes. KPI measurement uses data to show how well your business is performing. They will be different for each business, but the basic idea is the same. That is, to measure the important features of your business.

On its own, your blood pressure reading only says a little about your overall health. When you combine this with cholesterol levels and BMI, you and your doctor get a more informed picture of your health. In the same way, a business KPI tells a small part of the story about your business. Looking at set of business KPIs or metrics tells a bigger story. Measuring KPIs helps you understand your business from top to bottom. You can use that knowledge to make effective, strategic decisions.

Continue reading here >> LGBT Entrepreneurs Leverage Key Performance Indicators in Your Business

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