Here are some KPIs to watch this year, with examples to help you apply them:

• Revenue Growth
  • Example: If your revenue was £50,000 last quarter and it’s £55,000 this quarter, that’s a 10% growth!
• Net Profit Margin
  • Example: If your business earned £100,000 and your expenses totaled £80,000, your profit margin is 20%.
• Customer Acquisition Cost (CAC)
  • Example: If you spent £1,000 on marketing and gained 10 customers, your CAC is £100 per customer.
• Customer Retention Rate
  • Example: If you had 100 customers at the start of the year and retained 90 by the end, your retention rate is 90%.
• Accounts Receivable Turnover
  • Example: If your annual sales on credit are £120,000 and your average accounts receivable is £20,000, your turnover rate is 6—meaning you collect payments every two months.
• Operating Cash Flow
  • Example: If your inflows (sales and other income) total £50,000 and outflows (expenses) are £30,000, your cash flow is £20,000—positive and healthy!
• Inventory Turnover (if applicable)
  • Example: If you sold £10,000 worth of inventory and your average stock value is £2,000, your turnover rate is 5, meaning you’re moving inventory efficiently.

These metrics provide a clear snapshot of your business health and help you plan for sustainable growth.

Your business numbers don’t have to be a mystery, let’s make them work for you in 2025 with our help!