A small business needs a dashboard with about eight KPIs: revenue, new enquiries, win rate, open quotes, overdue invoices, margin, utilisation and customer feedback. More numbers rarely bring more clarity. What matters is that each figure prepares a decision and is looked at regularly.
Which eight KPIs are worth it?
The table shows eight KPIs with the question each answers and the usual data source.
| KPI | Key question | Data source |
|---|---|---|
| Revenue per month | Are we on plan? | Invoicing software |
| New enquiries | Are enough prospects coming in? | Customer management, website form |
| Win rate | How many quotes become orders? | Customer management |
| Open quotes | How much is outstanding? | Customer management |
| Overdue invoices | Where is money missing? | Invoicing software |
| Margin per service | What do we earn from? | Invoices and costs |
| Utilisation | How much time is billable? | Calendar, time tracking |
| Customer feedback | How satisfied are customers? | Review profile, survey |
Pick only what you can actually influence. A business without stock does not need a stock-turnover figure. A KPI with no possible action is decoration.
Which KPIs should you avoid?
Avoid numbers that look good but improve no decision, so-called vanity metrics. These include page views or followers with no link to enquiries and orders. Ask of every number: what would I do differently if it rises or falls? If nothing comes to mind, delete it.
Also watch data quality. A dashboard shows only what has been entered. If enquiries are not recorded or invoices are booked late, even the prettiest chart gives false security.
How do you build a simple dashboard?
Begin with a spreadsheet in which you enter the eight numbers monthly. If after a few weeks you find the effort worthwhile, the numbers can be pulled automatically from your tools. A dashboard of your own brings data from invoicing software, customer management and calendar together on one page. When that makes sense is explained in Custom business software: when does a customer portal or dashboard actually pay off?.
Keep the page plain: a few large numbers, each compared with the target or the previous month, colour only for deviations and one line chart for revenue. Name one person who maintains the dashboard and explains the figures. Anyone analysing customer data should also keep data protection and access rights in view.
How do you read the numbers properly?
Always look at KPIs in context. Many enquiries with a low win rate point to unsuitable enquiries or weak quotes. Few enquiries with a high win rate suggest you sell well but are found too rarely. If revenue rises while margin falls, you may be selling too cheaply.
Judge trends over at least three months rather than single spikes. You can only spot seasonal swings by comparing with the previous year. When a figure deviates, ask first for the reason, not for someone to blame.
How do you anchor the numbers in daily work?
Set a fixed appointment, such as 15 minutes on Monday. Three questions are enough: what has changed? Why? What do we do this week? Note each decision with a date and check the following month whether it worked. That turns the dashboard into a steering tool. If you do not yet record enquiries and quotes systematically, When is a CRM worth it for a small business? can help.
- Eight KPIs chosen, each with a key question
- Data source named for each KPI
- Target or comparison value set
- Responsible person named for upkeep and explanation
- Weekly 15-minute appointment put in the calendar
- Numbers with no possible action deleted
- Data protection and access rights checked
Conclusion: few numbers, looked at regularly
A good dashboard is short, understandable and used. Begin with a spreadsheet, stay with eight numbers and anchor looking at them in your weekly routine. If you want to combine data from several systems automatically, see our business systems service or describe your situation.
