# 606 - KPIs: How to Measure Your Business Performance

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Text version: https://stenobird.com/podcast/the-how-of-business-how-to-start-run-grow-and-exit-a-small-business-435204/606-kpis-how-to-measure-your-business-performance.md
Podcast: [The How of Business - How to start, run, grow and exit a small business.](https://stenobird.com/podcast/the-how-of-business-how-to-start-run-grow-and-exit-a-small-business-435204)
Published: 2026-05-04T07:00:00+00:00
Episode link: https://howofbusiness.libsyn.com/606-kpis-how-to-measure-your-business-performance
Audio file: https://pdcn.co/e/dts.podtrac.com/redirect.mp3/pscrb.fm/rss/p/traffic.libsyn.com/secure/howofbusiness/Episode_606_-_KPIs.mp3?dest-id=346019
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Duration seconds: 1020

## Resource

KPIs (Key Performance Indicators) provide an effective way to measure your business performance using both leading and lagging indicators to make better decisions and drive growth. Show Notes Page: https://www.thehowofbusiness.com/606-kpis-measure-business-performance/ Small business owners often rely on gut feel or a quick glance at their bank balance to gauge how their business is performing, but that approach leads to reactive decision-making and missed opportunities. In this episode, Henry Lopez explains how to use Key Performance Indicators (KPIs) to measure business performance more accurately and proactively. He breaks down the difference between lagging indicators - such as revenue, profit, and cash - and leading indicators like leads, conversions, and customer activity, which help predict future performance. By understanding and tracking both, small business owners can gain clarity and control instead of simply reacting to past results. Henry also shares a simple framework for selecting KPIs, emphasizing that most small businesses should focus on just three to five core metrics that are measurable, aligned with business goals, and reviewed consistently. To make it practical, he walks through a sample KPI scorecard that includes revenue, profit, cash, customer flow, and customer retention, while reinforcing that these are starting points, not a one-size-fits-all solution. "You can't improve what you don't measure, but only if you're measuring the right things," Lopez explains, highlighting the importance of choosing the right metrics for your business. This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and en…

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