Are you working towards building a sustainable and transferable business that's primed for a successful exit? It's a goal many entrepreneurs share, but how do you ensure you're on the right track? The answer lies in understanding and tracking the right Key Performance Indicators (KPIs).
Exit planning expert Darren Cherry, an Area President with FocusCFO, highlights 10 essential KPIs that offer critical insights into your business's health and attractiveness to potential buyers. These go beyond typical financial metrics and delve into areas like employee engagement, customer loyalty (measured by Net Promoter Score), recurring revenue streams, and even the effectiveness of your risk mitigation strategies.
Why are these KPIs so important? Because they provide a holistic view of your business's strengths and weaknesses, allowing you to identify areas for improvement and demonstrate your company's value to potential acquirers. A high Customer Acquisition Cost might reveal inefficiencies in your marketing, while a strong recurring revenue rate signals stability and predictable cash flow.
Ready to unlock your business's true potential and prepare for a smooth exit? As Exit Planning Institute Preferred Partners, we've shared these 10 KPIs and how to leverage them for growth. Read the full article on the Exit Planning Institute blog.