We recently had a discussion about key performance indicators (KPIs) in one of my coaching groups.
Which ones should you track — if any?
In some cases, tracking KPIs can be a useful exercise. A few that can be helpful include:
- Balance in your profit account
- Buffer balance in your compensation account
- Internal hourly rate for projects invoiced this month
- Source of new clients landed this month (where they came from)
- Number of new prospects contacted (how many doors you knocked on)
- Number of new clients you landed this month
- Lifetime Customer Value (LCV) to date for each client
- Average internal hourly rate for each client.
You could track these or others you might be interested in.
But if you decide to track KPIs, I have two words of caution:
Start with three to six KPIs at most
Tracking KPIs can get out of hand quickly. If compiling the data starts to feel like a big chore, you’ll avoid it, and that can put your earlier efforts to waste.
Therefore, it’s better to start with three (and maximum six) KPIs that matter the most to you and see how things go.
Take the time to analyze the data
The data you collect will be useless if you don’t analyze and act on it.
I’m not suggesting you lock yourself in your office and spend hours crunching numbers every month.
But do pay attention to trends (both good and bad) so you can identify problems and spot opportunities.
Don’t Get Lost in Your KPIs
KPIs can be a useful tool for freelance business owners. But don’t let them overwhelm you — and take the time to learn from them.
Because if you don’t, you’re better off not tracking them at all.
By the way… whenever you’re ready, here are 4 ways I can help you grow your freelance business:
1. Grab a copy of my book for ESTABLISHED writers.
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I’m putting together a new implementation group this month. If you’d like to work with me to grow your income quickly with better clients (and become one of my new success stories) … just hit reply and put “Case Study” in the subject line.
4. Work with me privately.
If you’re a 6-figure writer who’s trying to earn more in less time, with less stress, I might be able to help you get there faster than you think. Just hit reply, put “Breakthrough” in the subject line, and I’ll back to you with more details.