Sales KPIs for startups must be connected to revenue, such as leads generated and how those leads convert through the sales funnel.
Sales KPIs for Startups
Serial entrepreneur, Igor Krasnykh, on sales KPIs for startups. He shares that key performance indicators (KPIs) are not limited to sales roles but apply to every person brought into a business, whether a contractor, part-time employee, or full-time employee. He explains that KPIs provide measurable goals to evaluate performance and contribution. For salespeople, KPIs must always be directly connected to revenue, such as the number of leads generated and how those leads convert through the sales funnel.
Krasnykh breaks down the distinction between different types of leads. A marketing-qualified lead (MQL) is someone who shows interest but is not yet ready to make a purchase. These individuals should be nurtured through targeted newsletters and marketing campaigns until they are closer to making a purchase. A sales-qualified lead (SQL), on the other hand, is a potential customer who has expressed readiness to purchase, although negotiations or pricing discussions may still be ongoing. Finally, customers are those who have already completed a purchase.
Tracking KPIs involves monitoring each step of this funnel: how many marketing posts or videos are created, how many leads those generate, how many convert into MQLs, then into SQLs, and ultimately into paying customers. This layered approach enables the measurement of performance at every stage of the customer journey.
Ultimately, these metrics are tied to an essential financial KPI: customer acquisition cost (CAC). By calculating CAC, businesses can determine whether their product pricing is sufficient to cover acquisition expenses and generate profit. If the cost of acquiring customers is higher than the revenue generated per customer, pricing or processes may need adjustment.
Krasnykh stresses that clear KPIs allow businesses to evaluate effectiveness, refine strategies, and ensure that every team member contributes to growth in a measurable, revenue-aligned way. This structured approach helps founders understand performance, optimize resources, and maintain profitability.
SKMurphy’s take on KPIs for startups
When to introduce KPIs into your business can be tricky. Too early and you introduce a lot of overhead for not much pay off. In the early days, it can be more important to have a simple system than spending a lot of time developing a more comprehensive system that you never use after the initial 3 months.
Here are the first couple of basic KPIs that you should know
- Customer Lifetime Value (LTV) – Total revenue expected from a customer over the next three years.
- Win Rate
- Sales Cycle Length
- Customer Satisfaction/Referrals
Initially finding customers may take a lot of your time and your first couple of customers may not be profitable. But as you validate your offering and achieve product-market fit, you need to know and measure Customer Acquisition Cost (CAC) and Profit.
There are a couple of KPIs, like MQL and SQL that Igor talks about that helps you understand your pipeline and allow you to forecast revenue. As you hire and scale your business these will become important as you manage expenses.
About Igor Krasnykh
Igor Krasnykh is the founder and CEO of TechNWeb and IdealData.io He helps B2B founders scale from six to eight figures by building lean, systematized businesses that grow efficiently and are easy to sell.
With over two decades of experience, including senior roles at Fortune 50 companies and two patents under his belt, Igor now acts as a fractional CTO, COO, or CMO for founders who want more than just revenue. They want freedom, peace of mind, and a company that’s truly exit-ready.
His approach focuses on simplifying complexity, automating strategically, and transforming everyday operations into repeatable systems. Whether you’re a solo founder or leading a small team, Igor will show you how to build a business that runs like an asset instead of a job. Watch Igor’s full talk at The 7-Figure Solo Founder: What to Build, Delegate, and Let Go