5 KPIs That Matter More Than Your Bank Balance

Revenue minus direct cost of delivering the product or service, divided by revenue. Tells you whether the business model is healthy. Trends matter more than the absolute number — a 4-point drop is a flag even if margin is still positive.

Average days from invoice to payment. Tells you whether customers are funding you or you are funding them. Above 45 days for non-government work usually means a collections process needs attention.

Cash on hand divided by average monthly burn (or net cash use). Tells you how long you have to fix a problem. Under three months is a red zone; under six is a yellow.

Total sales and marketing spend divided by new customers. Tells you whether growth is paying off. Pair with average revenue per customer to compute payback.

Revenue minus variable costs per service line. Tells you which work to grow and which to cut. Many businesses discover that 20% of their offerings produce 80% of their margin.

Pick a monthly close cadence. Post the five numbers somewhere visible. Trends across three months matter more than any single month.