Key Performance Indicators

Definition: The metrics that best measure how well a company is achieving its goals.

Example: Key performance indicators (KPI’s) include sales amounts, profitability metrics like return on assets, or non-financial measures like customer satisfaction. KPIs are also called key performance metrics.

Why It’s Important: Business owners can be overwhelmed with all the information they are receiving about their company. Determining the KPIs allows you to focus on the most important information. Other information can distract you from success.

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