5 professional services KPIs to measure in your business
In this broad sector, the KPIs that’ll work for your business might be quite niche. Here is our top pick of professional industry KPIs, because what’s measured is managed.
1. Sales: actual vs forecast: Compare your actual sales figures with your forecasted figures to see if you’re on course. If you were to only compare your figures monthly, let’s say, then by the time you reach month end, it would be too late to repair any losses.
2. Client satisfaction: The more satisfied your clients/customers are, the more likely they’ll return to you. Nurture your existing clients. They’re the ones that keep your business going. Also make sure you’re appealing to new customers, to have a good mix of clients.
3. Wage %: How you approach your wage % depends on your company. Junior members of staff may be cheaper but need training. More experienced employees will save you time in training. If the figures are not stacking up then you could find freelancers, allowing you to pay per hour or on a project.
4. Return on assets vs return on excess cash: Excess cash should be reinvested to grow. If your cash is looking low, ensure you can cover your outgoings, then it’s time to source new business. You can’t operate without cashflow, so remember to forecast your earnings regularly.
5. Project margins (per service): You need to be able to tell if you can afford to deliver the service a client has ordered. Have you priced it correctly? Is there enough cash to cover the service or project, plus all your other outgoings?