As I explained in last month’s column, key performance indicators (KPI) are simple mathematic equations that can help you run your business. When calculating these analysis points, the results are usually shown as a fraction, but if you divide the numerator (the top number) by the denominator (the bottom number) and multiply it by 100, you end up with a percentage. For example, let’s say you want to determine what percentage of your revenue your auto expenses take up. If your total auto expenses are $50,000, and your revenue is $1,000,000, then that fraction is written as 50,000/1,000,000. If you divide the numerator by the denominator (50,000 ÷ 1,000,000) and multiply the result by 100, the percentage is 5%. Now, knowing whether 5% is good or bad business-wise is another story. That takes a frame of reference, and I have […]