Here's how you can measure the success of your small business by tracking key metrics.

An example for Revenue growth. Consider a small coffee shop, "Brew Haven," which generated $50,000 in revenue in its first year. By the end of the second year, its revenue grew to $75,000. This $25,000 increase represents a 50% growth rate year-over-year. By examining this growth, Brew Haven can identify successful strategies, such as popular new menu items or effective local marketing efforts. Understanding these factors helps the business continue to invest in what works and prepare for slower periods by exploring new promotional activities or expanding its offerings. This steady revenue growth demonstrates that Brew Haven is thriving, providing a strong basis for future expansion and sustained profitability.

KPIs (Key Performance Indicators) are the most important set of statistics a business can monitor. I never kept track of these for the early years of my business. But I owe my Board of Advisors, seasoned business people, to having my company establish and monitor them. This led to us consistently meeting our financial goals and led to an unbelievable rise in the value of my company.

Never apologize for maximizing profit. Without industry leading profit, you will not be able to find and retain talent, invest in technology, meet compliance requirements and expand your company. The companies that lead their respective industries in profit margins are the ones that will lead their industries in value.

Clientes satisfeitos retornam e recomendam nossos serviços, expandindo nossa base de forma orgânica. Encantar o cliente, superando suas expectativas, fortalece a lealdade e cria uma conexão emocional valiosa. A fidelização é essencial, pois clientes fiéis garantem receita recorrente e estabilidade. Investir consistentemente em atendimento de excelência e produtos de qualidade é vital para nosso crescimento sustentável e competitividade no mercado.

Tracking customer loyalty is crucial for measuring the long-term success of your small business. Metrics like repeat purchase rates, customer lifetime value (CLV), and net promoter score (NPS) provide deep insights into how satisfied your customers are and their likelihood of returning. High levels of customer loyalty can lead to lower marketing costs and more stable revenue, ensuring your business thrives over time.

Customer loyalty? That's not a metric... Come on. Churn rate, LTV, CAC—those are metrics. NPS is cool, but how does it help with your financial projections? Sure, "High levels of customer loyalty typically lead to lower marketing costs and a more stable revenue stream," but where's the practical application? Let's cut the obvious AI-generated fluff and get real.

In our early years, we did not keep track of any statistics, relying instead of running the company by the seat of our pants. Big mistake. In later years, we established, with the help of our Board of Advisors, key production indicators (kpi's) to track all operations of the company, including client retention. You can't expand your company or keep profit levels high if you can't retain clients/customers.

My company almost went bankrupt not watching cash flow. We were so busy "selling" and expanding, we forgot basic and common sense processes to ensure we got the cash from clients/customers. Our accounts payable was out of control. We ran up debt. Then we got smart. We ran weekly cash flow reports and actually read them. We got very strict on payment terms with clients/customers. We focused on expenses not in line with our budget. We not only survived, we prospered.