Most service businesses doing $250K to $5M need five to seven metrics. Fewer than five means you're missing something. More than seven means you'll stop tracking some of them within a month.
Here are the five metrics that apply to nearly every founder-led service business.
1. Pipeline conversations. How many qualified conversations happened this week? This is the leading indicator for revenue. If conversations drop, revenue drops 30 to 60 days later. Track it weekly and you have time to react. Track it monthly and you're always behind.
2. Active proposals. How many one-pagers or proposals are outstanding? This tells you how much potential revenue is in play. If the number is always low, the problem is upstream (not enough conversations). If it's high but deals aren't closing, the problem is in the sales process or offer clarity.
3. Close rate. What percentage of proposals become paying clients? Track this rolling over 30 or 90 days. A close rate below 30% usually signals an offer clarity problem. Above 50% means your pipeline is well-qualified and your offer is landing.
4. Revenue vs. target. Where are you against the monthly or quarterly goal? Simple, but most founder-led businesses don't track this weekly. They check the bank account and guess. A weekly revenue number creates urgency when you're behind and confidence when you're ahead.
5. Delivery milestones. Are active client projects on track? One number: percentage of milestones hit on time this week. If delivery slips, client satisfaction drops, referrals dry up, and the founder gets pulled back into operations.