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Developing KPIs: Q&A With Industry Experts

Key performance indicators help specialty food leaders track the progress of their business and nurture its path toward success.

During SFA's In the Know webinar, “Key Performance Indicators: Developing Measures That Drive Results,” Liz Myslik of growth investor Loft Growth Partners and Dave Hirschkop, previous owner of Dave’s Gourmet, will dive into how to develop strong KPIs. During the conversation, they will address what data is important to consider, how to find it, and use it to improve business functions.

The webinar is free for members and $19 for non-members. Register now.

SFA News Daily recently spoke with Myslik and Hirschkop about the topic. 

What are you most excited to share during the session?

We are excited to share the thought process of routinely asking certain questions about your business and then using data and KPIs to answer those questions. This is a proactive approach that will maximize your chances of success while making you feel more in control. We are also excited to share practical information you can use today to help better measure and manage your business for success.

Why are KPIs important for a business?

It is too easy to either use subjective or emotionally based assumptions about your business or to get too busy to really check on different business aspects. KPIs are objective measures that can be used routinely to help managers understand the state of their business, minimize future problems, and maximize performance.

What goes into developing a good KPI?

KPIs should start with a business question like how well is my business doing against goals that are important to my stakeholders? They should be based on reliable, accessible information. They should also be used in context, such as ‘is your high-velocity number accurate’ or ‘is it really based upon overspending on promotions?’

Is it a good idea to compare your business to those of competitors when developing your growth strategy?

What competitors do is great contextual data to inform your strategy, but you should have a thesis and position that sets you apart. You can learn a lot from where your competitors succeed and from where they fail.

When businesses are just starting out, what metrics should they use to judge their success?

For startup companies, you really need to understand product market fit via velocity, if you can eventually make money by having enough gross margin, or if you will be able to stay in business by being able to project the days of cash you have on hand. You will always look at the company’s overall growth through net sales or the net sales growth trend.

Related: Video: Patrick Ford, Bone Suckin' Sauce Shares Growth Strategy; Consumer Insights and The Future of Food at IFT First

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