How to Track the Right Numbers to Grow Your Home Improvement Business

August 2, 2024

Clay Narron

An Introduction to Key Performance Indicators (KPIs)

When you’re ready to grow your Business, it can be hard to know where to start, but one thing that's for certain, you can't improve what you don't measure and you can't measure what you're not tracking. Luckily, there are metrics you can use to measure the most influential components of your Business that, if improved, can promote growth. These are your key performance indicators (KPIs) and they are specific to your business. Improve them, and you can grow your bottom line.

Identifying the Key Performance Indicators that Matter Most to Your Business

Identifying the best KPIs for your Business can be challenging. There are an endless number of them. In fact, you can even create your own. Some KPIs measure finances (net profits, gross profits, etc.). Others are used to track the results of marketing programs, such as the number of marketing campaigns, number of events, and number of qualified leads generated.

KPIs must be:

Clearly defined
Easily quantifiable and measurable
Directly connected to profit-based objectives
Controllable

For a home improvement or remodeling Business, you might wish to measure average ticket size, number of deals won and testimonials. The key is to find a few (4–5) specific elements or activities that align with your goals and have the potential to impact your annual sales revenue.

Taking Action to Promote Incremental Growth

Once you’ve identified and begun measuring your key performance indicators, concentrate on specific changes you can make to one area of your Business to promote growth. Avoid making too many changes too quickly. Your goal should be to make changes effectively, not quickly to avoid disrupting your day-to-day operations. We call that incremental growth.

Be sure to set a baseline by measuring each KPI for a specific amount of time. Then, continue your measurements after making a change to the process involved. As you proceed, you may wish to finetune your changes before moving on to another element of your operation. Patience is vital because implementing changes and measuring results takes time and as already mentioned, you do not want to move so quickly that your ongoing activities suffer.

Identify, Measure, and Improve to Grow Your Business

The KPIs that you need to measure and improve to foster incremental growth are specific to your Business. Incremental growth is scalable and achievable if you pay attention to the details and don’t try to rush the process. You can optimize performance by identifying key performance indicators and using them to measure your incremental growth. If all goes well, you’ll begin to see growth in analytics, and hopefully, in profits.

Examples of Potential Home Improvement KPIs

Below is a list of potential KPIs that may be useful to a home improvement Business. The list is not comprehensive but is designed to provide examples that can help get you started on identifying your own KPIs.

Process: