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Using KPIs to Grow Profit & Cash

Key Performance Indicators (KPIs) are like red, orange and green traffic lights to run your business by.

They allow you to spend more time running your business, sure that you are on the right track and quickly tell you if things are off track, so you know what to focus on fixing.

In this eBook we’ve used a typical contracting business as an example of what types of KPIs to set in your business.


Businesses typically have Base (short term) goals of profit and cash and long term goals of increasing business value through:

  • Ongoing profit generation
  • Expansion of core business
  • Adding other businesses
  • Other investments (property, other businesses, etc.)

The Drivers of Business Profit & Cashflow

Think about the key results which you should pursue in your business, starting with:

  • Sales – the cornerstone of any business success
  • Labour costs – a key area where you can blow your profits
  • Equipment & parts costs – any room for improvement?
  • Overhead costs – keep the costs down and see the impact on pricing jobs
  • Cash flow - the lifeblood of any business


What are some of the objectives in Marketing & Sales? Strategically, you may want to think about:

Target Markets:

  • Commercial & Government Residential Maintenance & Service Electrical
  • Diversification of customers:
  • Mix of residential & commercial – too much reliance on one sector could be risky
  • Customer concentration – too much reliance on a small number of customers could be risky
  • Geographic diversification – grow your reputation

In this eBook we thoroughly explore KPIs and using the example of a typical contracting business, show you how to plan for your own business KPIs. Getting the right ones in place provides confidence you are heading in the right direction and the profit and cash flow results will take care of themselves! If you are looking for more profitable jobs, get your copy now!