Build a KPIs Dashboard That Actually Helps You Run Your Business

Are you tracking KPIs (key performance indicators) for your business? You can’t improve what you don’t measure. And yet, many business owners are flying blind—checking the bank balance, glancing at monthly revenue, and hoping for the best.

If you want to grow, scale, or sell your business, you need a clear view of the numbers that really matter. That starts with building your own KPI dashboard.

Tie KPIs to Your Business Goals

Start with what you’re trying to achieve. Are you looking to grow revenue, boost profitability, or prepare for a sale? Your KPIs should reflect the results you’re aiming for.

Examples:

• Revenue growth → Track new sales, pipeline conversion
• Profitability → Track gross margin, net income, and cost control
• Exit strategy → Track enterprise value drivers like EBITDA and customer retention

Organize by Business Function

Group KPIs into functional categories to keep it manageable. Start with 1–3 key metrics per category, such as:

Use Tools You Already Have

You don’t need expensive software to start:

• Use QuickBooks or Xero for financial KPIs
• Use Google Sheets or Excel for manual tracking
• Pull from your CRM or project management tools for other metrics
• Use AI tools, like ChatGPT, Perplexity, Gemini, etc.

Once the basics are in place, you can automate with tools like LivePlan, Databox, or Klipfolio.

As a real-world example, I put the 2023 and 2024 P&Ls for Life Moves Wealth into ChatGPT and asked it to give me KPIs comparing the two years. My exact prompt: “Please analyze these two P&Ls and give me key kpis for how my business is doing.”

This prompt returned key metrics with a brief caption for the result, as well as a few high-level takeaways. Here are the results:

• Revenue Growth: +37.7%, Strong year-over-year growth—this shows positive momentum and scalability.
• Net Income: +1.6%, Despite strong top-line growth, bottom-line profit was nearly flat—time to assess where expenses grew. Payroll and travel expenses were higher in 2024 because of our S-Corp election, as well as travel to see out-of-state clients that we did not do in 2023.
• Net Margin: 2023 39.2% vs 2024 28.9%, Margin compression is a red flag. Higher revenues didn’t translate into proportionate profit, likely due to added overhead (e.g., payroll, software, travel).
• Operating expenses: +65.2%, Expenses grew faster than revenue. The largest increases were in: Payroll (new in 2024), Software, Travel, Meeting expenses
• Owner’s Discretionary Spending: +$3,000, Spending here increased—worth reviewing for ROI and necessity.
• Software as a % of revenue: 2023 = 18.2%; 2024 = 14.7%, Still a large budget item—ensure you’re getting productivity or client value from it.
• Payroll as a % of revenue: 17.5%, You added payroll—fair for a solo practice or lean team, but watch how it scales.

Set Benchmarks and Targets

Tracking alone isn’t enough—you need context. Without it, your data is just noise. Context helps you interpret what the numbers actually mean, whether you’re on track, falling behind, or outperforming expectations—and most importantly, what to do next.

• Compare to your past performance (month-over-month or YoY)
• Use industry benchmarks (ask your advisor or check trade groups)
• Set realistic, goal-oriented targets to guide your team

Review and Refine Your KPI Dashboard

A dashboard should evolve with your business. As your goals shift and operations grow more complex, your KPIs need to keep pace. Regularly revisiting your dashboard ensures you’re measuring what matters most—right now, not just what made sense six months ago.

• Review at least monthly—ideally at your leadership meetings
• Drop vanity metrics, add new ones as needed
• Use your dashboard to inform real decisions, not just report numbers

Keep in mind that as your revenue grows, your percentage-based KPIs will shift too. In my case, a nearly 4% drop in software costs as a percentage of revenue wasn’t due to cutting expenses—it reflected strong top-line growth. Since software is my largest expense after payroll, tracking this KPI helps me evaluate which tools are actually delivering economic value—to the business and to our clients.

Your dashboard doesn’t need to be fancy—it just needs to be focused. When built right, it becomes one of the most powerful decision-making tools in your business.

Want help building your dashboard and understanding which KPIs matter most for your business? Schedule time with me here.

Learn more about the B.O.S.S. Method™ for business owners.

Disclosures

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