Dr. Paul Borosky, DBA, MBA
Business Plan Writer · Management Glossary
What Is a KPI for a Small Business?
Dr. Paul Borosky, DBA, MBA, rarely writes a plan without a short list of KPIs, the key performance indicators that tell an owner whether the business is on track. Lenders want to know what you will watch each week. In this guide, the business plan writer explains what makes a good KPI, how many to track, and how a car wash picked its own.
Questions? Call or text (321) 948-9588. Dr. Paul answers personally.
Last Updated: 11/07/2026 · Written by Dr. Paul Borosky, DBA, MBA
The Short Answer
What Is a KPI?
Know Which Numbers Run Your Business?
In Plain English
The Few Numbers That Say Whether You Are Winning
A KPI is one of the few numbers you check every week to see if you are winning.
Sales alone can hide what is happening. A short list of the right numbers shows you why sales went up or down, while there is still time to do something about it.
Watch: KPIs
Watch Dr. Paul on KPIs and Structure
COO Services for Small Business: Strategy, Organizational Structure & KPI
Dr. Paul shows how strategy, structure and a short list of KPIs work together to keep a small business on track. (7:20)
A Real-World Example
The Car Wash With Flat Sales
A car wash owner in Jacksonville, Florida only watched daily sales. Sales were flat, and he assumed traffic was down.
He added three KPIs: cars per day, average ticket, and active memberships. Cars per day were steady. Memberships were dropping each month. The problem was cancellations, not traffic, and that called for a very different fix.
From Dr. Paul’s Fabled Forest
Fast Frankie’s Nightly Card
Doctor Owl was on the trolley platform, pocket watch open, when Fast Frankie ran up looking confused.
“Some nights the truck is slammed,” Frankie said. “Some nights it’s dead. I can’t tell why. I only count the till at close.”
Doctor Owl closed his watch. “How many pizzas did you sell each hour last night? And how many faces did you recognize?”
Frankie had no idea. So Doctor Owl handed him a small card with two lines on it: pizzas sold each hour, and repeat customers.
By the end of the month, the cards told the story. Frankie’s slow nights were the nights he parked by the mill instead of the market. He moved the truck, and the coins followed.
This story is one of dozens told across Dr. Paul’s Fabled Forest Business School Series. You just read one from Book 1.
Dr. Paul’s Insight
Dr. Paul sees owners track too many numbers or none. A short list, checked weekly, tends to beat a dashboard nobody reads.
Put It to Work
Starter KPI Card for a Small Food Business
Start with three to five numbers. Swap in the ones that fit your business.
| KPI | What it tells you | How to measure it | Check |
|---|---|---|---|
| Sales per hour | Which hours earn and which drag | Sales for each hour of the shift | Nightly |
| Average ticket | Whether customers buy more or less | Total sales ÷ number of orders, same day | Nightly |
| Repeat customers | Whether people come back | Count of orders from known regulars or loyalty members, for the week | Weekly |
| Cash on hand | Whether the business can pay this week’s bills | Bank balance minus checks not yet cleared, same day each week | Weekly |
Watch Out
Pitfalls When Using KPIs
Likes and page views feel good but may not connect to sales.
If you track 20 numbers, you will probably act on none of them.
The goal is the target. The KPI is the number that shows your progress toward it.
A month is a long time to miss a drop in sales.
Why It Matters
Benefits of Tracking the Right KPIs
- Problems tend to show up earlier
- The team knows what winning looks like
- Better conversations with lenders
- Projections you can test against real results
In Your Business Plan
How KPIs Show Up in a Business Plan
Lenders want to know how you will watch the business after the loan closes. A short list of KPIs tied to your projections answers that.
Sample plan excerpt: Milestones and Metrics
“Management tracks sales per hour, average ticket, and repeat customer count nightly, and cash on hand weekly. Results are compared to the monthly projections, and any variance over ten percent is reviewed.”
FAQ
Questions Owners Ask About KPIs
What are examples of KPIs for a small business?
How many KPIs should a small business track?
What is the difference between a KPI and a goal?
More From the Series
Keep Building Your Business
Every book in Dr. Paul’s Fabled Forest Business School Series teaches one subject through short stories, real terms, and one-page worksheets.
Dr. Paul Borosky, DBA, MBA
Dr. Paul is a business consultant and author with 14+ years of experience and 1,000+ written business plans. He works with owner-run small businesses on plans, financial projections, and the systems that let a business run without the owner doing everything. This page is part of the glossary for Management and Leadership for Small Businesses, Book 1 of Dr. Paul’s Fabled Forest Business School Series.
This page is for general educational purposes only. It is not financial, accounting, or legal advice. For decisions about your own business, consult a qualified professional.