Focusing on monthly revenue is like looking in the rearview mirror, as it reflects past activities. Instead, track leading indicators—the upstream metrics like webinar show-up rates or call conversion rates—that predict what your revenue will be weeks or months from now.
There are no universal metrics that work for every business. To find your key numbers, map the literal path a customer takes from discovery to purchase. Your most important metrics are the conversion points between those steps where the biggest drop-offs occur.
As a founder, you should only track 3-4 top-level metrics that signal overall business health. Your team should own the 20+ granular KPIs. This allows you to stay out of the weeds and only dive deep when a high-level number is off and your team needs help.
The psychological reason founders avoid looking at their numbers is that data makes problems feel real. A 'slow launch' can be dismissed as a feeling, but a specific conversion rate drop forces you to acknowledge the problem and take action, which can be uncomfortable.
The test for a valuable KPI is its connection to action. If a metric like 'follower count' drops, there's no clear, immediate action that directly ties back to revenue. A useful metric, like 'webinar show-up rate,' immediately tells you which system to investigate.
Resist the impulse to 'blow everything up' after one bad week of data. A single data point can be an anomaly. Before making significant changes to your systems or funnels, wait until you see a consistent negative trend over three to four weeks.