Finance
8 min read· Updated 2026-10

Small business KPIs: the 12 numbers worth tracking

A KPI is only useful if it changes a decision. Most small businesses need about a dozen numbers, checked on a fixed rhythm, rather than a dashboard of fifty.

Money

Check these monthly; check cash weekly.

  • Revenue — total sales in the period, and the trend versus last year.
  • Gross margin — (revenue − direct costs) ÷ revenue.
  • Net profit margin — profit after all costs ÷ revenue.
  • Cash runway — cash in the bank ÷ average monthly net spend.
  • Accounts receivable days — how long customers take to pay you.

Customers

Check monthly or quarterly depending on volume.

  • Customer acquisition cost (CAC) — sales and marketing spend ÷ new customers.
  • Customer lifetime value (LTV) — average revenue per customer × gross margin × average lifetime.
  • LTV to CAC ratio — above 3 is generally considered healthy.
  • Churn rate — customers lost in the period ÷ customers at the start.

Pipeline and operations

Check weekly.

  • Lead-to-customer conversion rate.
  • Average deal size and sales cycle length.
  • On-time delivery or job completion rate.

Make them actionable

Give every KPI an owner and a target, and write down what you will do if it moves the wrong way. If a number never triggers an action, stop tracking it.

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