Many people dream of becoming self-employed or achieving greater professional success. However, the path to your goal is often rocky and full of challenges. In this blog article, I would like to show you which key metrics are most important for founders and entrepreneurs, and how you can use them to successfully manage your business.

The two types of key metrics

There are two types of key metrics: Result metrics and Activity metrics.

Result metrics show you how well your business is already performing. These include, for example:

• Revenue
• profit
• Profit margin
• Customer Lifetime Value (CLV)

Activity metrics on the other hand, show you how much you are doing to make your business successful. These include, for example:

• Number of phone calls
• Number of emails
• Number of website visitors
• Conversion rate

Why activity metrics are more important

Result metrics are important, but they do not tell you what you need to do to achieve your goals. Activity metrics, on the other hand, help you optimise your activities and thus improve your results.

The formula for success

The formula for success is:

Activity metrics x conversion rates = result metrics

This means: The more you do and the better your conversion rates, the better your results will be.

How to improve your activity metrics

There are many ways to improve your activity metrics. Here are some tips:

• Set clear goals. What do you want to achieve?
• Analyse your current activities. Where can you improve?
• Develop a plan. What do you need to do to achieve your goals?
• Set quotas. How many activities do you need to carry out per day, week, or month?
• Track your progress. Measure your results regularly and compare them with your goals.
• Optimise your activities. Where can you become even more efficient?

Further tips:

• Introduce a key metrics portfolio. This way, you have all the important metrics in view.
• Use software to track your metrics. This saves you time and effort.
• Seek advice from an expert. This way, you receive individual tips for your business.

Conclusion:

Activity metrics are an important tool for founders and entrepreneurs. With them, you can optimise your activities and thus improve your results.

P.S.: In my blog, you will find more helpful tips and tricks on starting up and succeeding as an entrepreneur.