Key Performance Metrics Every Business Owner Should Track in Indiana and Ohio
The Connection: April 2025 Issue #77
In the heart of the Midwest, businesses are built on resilience, relationships, and relentless drive. The entrepreneurial spirit is alive in Indiana and Ohio.
Data isn’t just for tech companies or finance firms. Regardless of size or industry, every business needs to track the right metrics to ensure profitability. Whether you’re a seasoned entrepreneur or just starting, understanding which numbers matter can mean the difference.
Here are the key performance tracking metrics every Indiana and Ohio business owner should be tracking:
Net Income: The Ultimate Scoreboard
Revenue may be flashy, but net income tells the real story. After subtracting expenses, taxes, and operational costs, it’s your business’s final grade. Net income reveals whether your current model is sustainable or if your growth is just surface-level. A consistently low or negative net income is a sign to reevaluate pricing.
Gross Margin: Know What You Keep
Many businesses sell more to make more, without realising their margins are shrinking. Gross margin, the percentage of revenue that exceeds the cost of goods sold, shows how efficiently your business turns sales into profit. Even small disruptions can lead to big losses if you’re operating on razor-thin margins.
Conversion Rate: From Attention to Action
How many visitors turn into buyers? Your conversion rate measures the effectiveness of your sales processes. A low conversion rate can point to poor messaging, or a clunky sales process. Optimising this metric often leads to faster growth without increasing ad spend.
Expense Ratio: Spending for Survival or Success?
The expense ratio compares total expenses to total revenue. In growing companies, this number can fluctuate, but it should trend downward over time. A rising expense ratio, especially without a corresponding increase in revenue, is a red flag. Expense tracking should be detailed.
Website Traffic: A Pulse on Market Demand
Even for brick-and-mortar businesses, web traffic matters. It reveals how effectively your brand attracts and engages potential customers. A steady increase in visitors usually signals growing awareness, while sudden drops can indicate technical issues or shifts in interest.
Churn Rate: How Fast Are You Losing Customers?
If customers aren’t sticking around, growth becomes expensive. The churn rate measures the percentage of customers lost over a given period. High churn may indicate poor service, unmet expectations, or stronger competitors.
Customer Retention Rate: Build Loyalty, Not Just Sales
Loyal customers buy more often, spend more, and refer others. Retention rate shows how well you’re maintaining relationships and delivering long-term value. This metric should be viewed as a growth engine, not a side note for service-based businesses in Ohio.
Cost Per Lead: The Real Price of Attention
Knowing how much each lead costs is crucial if your business relies on generating leads, whether through digital campaigns, trade shows, or referrals. Cost per lead should be evaluated in context with conversion rates and customer lifetime value to determine overall effectiveness.
Forecast Accuracy: Predict, Don’t Just React
Accurate forecasting allows businesses to confidently plan inventory, staffing, marketing, and expansion. Poor forecasts can lead to overstock, cash flow issues, or missed opportunities. Use past performance data to refine predictions and improve decision-making.
Revenue Growth Rate: Track the Trend, Not the Hype
A single great month doesn’t mean long-term success. Your revenue growth rate shows the overall direction of your business. Is it growing steadily? Flatlining? Declining? Analysing this over months and quarters gives a more accurate picture of momentum and seasonality.
Employee Productivity: Value Over Volume
Indiana and Ohio businesses are known for hardworking teams, but work hours don’t always equal output. Use sales per employee, task completion time, or revenue per head to measure productivity. This ensures your team’s efforts align with business outcomes.
KPI Dashboard: Your Business on One Screen
A KPI dashboard brings together your most critical metrics in one place. It should be updated regularly and reviewed in team meetings. This isn’t just about monitoring, it’s about driving action, spotting trends, and making informed decisions faster.
Conclusion:
Business success in Indiana and Ohio isn’t just about showing up early and working hard. It’s about knowing your numbers. These key performance indicators give you the visibility to grow smarter, scale faster, and outlast the competition. The future belongs to business owners who stop guessing and start measuring.
