6 Business Metrics That Matter for SMBs


After small business owners establish their companies and reach their first few major milestones, it’s time to think about how to consistently grow sales and maximize long-term potential. 

Often, an entrepreneur’s initial goal is to get the first sale. Beyond that, business owners should prioritize securing a regular customer base. Then small businesses need to reach profitability and recoup startup costs. After completing these key goals, business owners can pursue opportunities to turn their companies into thriving enterprises. 

Growth and long-term success don’t happen by chance, though. Generally, leaders need to take stock of the most important metrics for their businesses and devise plans to progressively improve them and increase their bottom lines. That way, managers can focus on aspects of the organization beyond quarterly profits and losses and annual financial reviews.

Six business metrics that matter for small and midsize business include:

  • Customer acquisition cost

  • Average deal size

  • Margins per product line

  • Customer or client retention rate

  • Sales cycle length

  • Employee turnover rate

Keep reading to understand what business metrics are and explore these six business metrics. Then find out why each metric is crucial to your success.

What Are Business Metrics?

Business performance metrics measure various aspects of an organization’s productivity. They provide a quantified sense of a company’s potential. Positive performance in one area can be a leading indicator of growth in other areas if the organization manages its resources strategically.

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