The 10 KPIs Every SME Should Be Tracking (But Probably Isn't)

Revenue and profit are important — but they only tell part of the story. To truly understand your business health, you need to track a broader set of key performance indicators.

Here are the 10 KPIs we recommend every SME monitors monthly:

1. Gross Profit Margin — What percentage of revenue is left after direct costs? This tells you how efficiently you deliver your product or service.
2. Net Profit Margin — After all costs (including overheads), what's left? This is your true bottom line.
3. Debtor Days — How long does it take customers to pay you? The lower, the better for cashflow.
4. Creditor Days — How quickly are you paying suppliers? Balance this against debtor days.
5. Monthly Recurring Revenue (MRR) — If you have subscription or retainer income, track it separately. It's your most predictable revenue.
6. Cash Runway — At your current burn rate, how many months of cash do you have? Aim for 3+ months.
7. Revenue Per Employee — A simple efficiency metric. Are you getting enough output from your team?
8. Customer Acquisition Cost (CAC) — How much does it cost to win a new customer? Compare this to lifetime value.
9. Labour Cost as % of Revenue — For service businesses, this is often the biggest cost. Track it monthly.
10. Overheads as % of Revenue — Are your fixed costs growing faster than your revenue? This ratio will tell you.