Most founders struggle with choosing the right key performance indicators (KPIs).
They either track too many, track the wrong ones, or pick metrics just to impress investors.
I have uncluttered more dashboards and refocused more teams than I can count.
Below is the method I share with founders to pick KPIs that actually grow the business.
Table of Contents
KPIs Aren’t Decorations
If a metric does not drive action, it is just noise.
Your KPIs should punch you in the gut when something is off and offer clarity when things are working.
Don’t Copy Dashboards
Someone else’s “LTV : CAC” might be useless for you.
Your KPIs must match your business model, stage, and real goals—no one-size-fits-all.
Lagging vs Leading KPIs
Most teams obsess over lagging numbers like revenue or churn, but by the time those drop, damage is done.
Track leading indicators—new pipeline, demo-to-close rate, NPS trend—because they flag issues early.
Only 5–7 KPIs
Not twenty. Not fifteen. Not even ten.
Every KPI you keep should be owner-assigned, updated regularly, and tied directly to a business outcome.
Tie KPIs to People
If nobody owns a KPI, it is dead weight.
Clear owners mean clear accountability and real progress.
Clarity Beats Dashboards
Pretty charts do not pay the bills.
An “ugly” spreadsheet that sparks decisions is worth more than a gorgeous dashboard no one understands.
Reevaluate Every Quarter
Your business evolves, so should your KPIs.
Ask quarterly: Are we still tracking what matters? Do these metrics help us move faster? What is missing?
KPI Cheat Sheet
Early-Stage:
- Revenue
- Customer Acquisition Cost (CAC)
- Active Leads
- Conversion Rate
- Burn Rate
Scaling:
- Gross Margin
- Retention
- LTV : CAC Ratio
- Churn Risk
- Team Efficiency
Track what moves the business, not what looks good.
Conclusion
You are running a company, not a museum.
Here’s a quick rundown on everything I discussed.
- Track only actionable metrics.
- Customize KPIs to your model and stage.
- Favor leading indicators over lagging ones.
- Limit yourself to 5-7 well-owned KPIs.
- Review and refine every quarter.
Fewer metrics, more action, clear ownership, and tight feedback loops—that is how real businesses grow.