6 metrics that all founders and business owners need to track

6 KPIs that all founders and business owners need to track

Business Metrics, also dubbed as KPI (Key Performance Indicators) is the cluster of important business data that will help grow your business through well-informed decisions.

The number of KPIs that can be tracked vary widely depending on the type of your business and taking note of too much data can result in wasting an entrepreneur’s valuable time.

On the other hand, gathering the correct data can help you make smarter business decisions in the long run rather than depending on gut checks and mere luck.

Below are 6 important business metrics that many small business owners ignore:

ONE: Cost of Acquisition (CoA)

Customer acquisition is the act of attracting customers to your product or service. Whether it’s advertising in a traditional way or using social media marketing strategies, investing wrongly can be a severe blow to your profit margins.

To calculate the cost of customer acquisition, use the formula below:

Cost of Customer Acquisition = Total Sales & Marketing Cost / Number of New Customers Added