Gross profit is an important key performance indicator (KPI) to track, but so is the contribution margin. Many business owners unfortunately overlook contribution margin or do not fully understand what it represents. To truly understand your business's financials, learn what contribution margin is, how you calculate it, and what the number means for your business's ability to grow and expand.
Your business development team can't act on metrics that they can't track. Key performance indicators need to be.
Your business's Key Performance Indicators (KPIs) are your tools for measuring and tracking progress in essential.
Among the hundreds of professional services companies we count as clients, we have figured out one thing that rings.