Small Business KPIs: The 7 Numbers You Should Track Monthly
Running a business without tracking your numbers is like driving with your dashboard lights off. You don't need to track dozens of metrics. Most small businesses only need seven.
1. Monthly Revenue
Don't just look at the total — look at the trend. Is it growing, flat, or declining compared to the same month last year? A single month is a data point. Three months is a trend.
2. Gross Profit Margin
Revenue minus direct costs, divided by revenue. This tells you whether your core business is profitable before overhead. If it's shrinking, your costs are rising faster than your prices.
Healthy range: 50-80% for services, 30-60% for products, 70-90% for digital/SaaS.
3. Net Profit Margin
Revenue minus ALL expenses, divided by revenue. The true bottom line. What percentage of every dollar do you actually keep?
Healthy range: 10-25% for most small businesses. Below 5% means one bad month could tip you negative.
4. Cash in the Bank
Not profit. Not accounts receivable. Actual cash available right now. Track this on the first of every month.
Target: At least 2 months of operating expenses in reserve.
5. Customer Acquisition Cost (CAC)
Total marketing spend divided by new customers acquired. Track by channel if possible — you might find email costs $15 per customer while Instagram costs $80.
6. Repeat Customer Rate
Percentage of customers who buy more than once. High repeat rates mean lower acquisition costs and more predictable revenue.
Healthy range: 25-40% for e-commerce, 40-60% for services, 90%+ for subscriptions.
7. Revenue Per Customer
Total revenue divided by total customers. If growing, you're selling more to each customer or attracting higher-value ones. If declining, you might be discounting too heavily.
Why Seven Is Enough
These seven cover the five critical areas: revenue health, profitability, cash position, retention, and acquisition. A Revenue Health Score tracks all five areas automatically and gives you a single number with specific insights.