Setting targets is vital to success in whatever you do, whether it’s personal or business. When setting your business targets you can use a number of different Key Performance Indicators (KPIs), KPIs are quantifiable measurements of the improvement in performing an activity. KPIs should complement your overall business strategy. For a dropship business a KPI could be; Your goal is to increase sales by improving service, choose KPIs that measure quality EG repeat custom.

KPIs are critical to your business success. For this reason don’t set too many, only the ones the business depends on to reach its goals. Make sure your KPIs are measurable and comparable, for each one you’ll need:

• Title
• Definition
• Method of Measurement & Comparison
• Target

If, like me, your business targets are set in line with the financial year then remember about KPIs and make sure you create yours for the 2008/2009 financial year. If you are creating yours now then good luck, and remember to be ambitious but still realistic!

Further reading: Judah Phillips post on Key Performance Indicators.