Keeping track of staffing and materials, pitching for new business and getting existing clients’ campaigns live, means it’s a wonder that you get any financial tasks completed. However, if you focus on these KPIs, you can take a massive shortcut to a healthy business.
1. Project margins: A vital part of creative services is knowing how much of your cash can be allocated for a project. With the fact that payment may not be received until after completion, this KPI will protect your business from overspending on a given task. Factor in materials used and how much you should invest in them.
2. Revenue per client: Sometimes just a handful of clients bring in a large chunk of a business’ revenue. Other clients work almost as a bonus income as these core clients are such big hitters. Break down how much revenue each existing client brings in and calculate how many clients, on average, you need to secure per month.
3. Efficiency: In the creative world, efficiency is key. Let’s say you’re spending an average of five hours on each project. Suddenly a project comes in at double that time, so you need to work out why this has happened. Were the appropriate materials available?
4. Profit per time period: Freelancers can save you money as they can be hired by the project. Can you find a cheaper material to work with that’s easier to source? Little things can make a huge difference to your revenue.
Have a look through our KPI Library for more inspiration.