3 Metrics Every Teen Entrepreneur Should Track (and How)

Running a business comes with a lot of exciting parts, like creating new products, connecting with people, and landing new clients. But there’s another side that’s also important: tracking your numbers. These numbers, called metrics, help you see how your business is going. In this article, we’ll walk through three key metrics every young entrepreneur should track to stay on top of their business goals.

What Are Business Metrics?

Metrics are measurements that show how well different parts of your business are doing. For example, in a big company, they might track employee turnover, which means how often employees leave and new ones are hired. 

But if you’re running a small business or working solo, your focus will be on things like how much you’re selling or how your money is moving. Tracking these numbers matters because it helps you understand what’s working, what isn’t, and how to make better decisions for your business.

Metric #1: Cash Flow

Cash flow is the money moving in and out of your business, meaning what you earn and what you spend. Keeping track of it helps you stay organized.

Here’s an easy way to manage it:

• Create a simple spreadsheet in Google Sheets or use a free budgeting app.
• Make two main sections: one for income (money you’ve earned) and one for expenses (money moving out).
• Include details like invoices, payment dates, sales totals, and expenses such as materials, supplies, packaging, or website costs.

Why does this matter? You need to know whether you’re earning enough to cover what you spend, and it also makes tax time way less stressful. Try updating your sheet once a week so your records stay accurate and you always know where your business stands financially.

Metric #2: Profit Margin

Your profit margin is the percentage of money left after you’ve paid for everything it takes to run your business. It shows how much you keep from every dollar you earn.

Here’s the simple formula:

Profit Margin = (Revenue – Expenses) ÷ Revenue × 100

As an example, let’s say you make $100 selling handmade jewelry and spend $40 on supplies. Your profit margin is 60%.

A higher profit margin usually means your business is in a healthy place. It tells you:

• Whether your business model actually makes sense
• If your prices might be too low or your costs too high
• Which products or services bring in the most money

You can use this info to tweak your pricing, cut unnecessary costs, or focus more on the products or services that give you the best returns.

Metric #3: Sales Data

Sales data shows how, when, and where your customers are buying from you, and it’s one of the best ways to understand what’s driving your business forward.

You can track it in simple ways:

• Use your online store dashboard if you sell through an e-commerce platform.
• Create a spreadsheet or use a notebook to log your sales manually. Include details like the product name, number sold, date of sale, and source (such as your website, social media, or in-person events).

Tracking this info helps you see what’s working and what isn’t. For example, if a TikTok video you posted led to more sales that week, you’ll know that type of content connects with your audience, and you can do more of it.

You can also notice patterns in your sales, like your busiest months or seasons. If you tend to sell more around the holidays, plan ahead by preparing extra inventory or running special promotions. During slower periods, take time to analyze what could be improved or marketed differently.

Putting It All Together

Tracking gives young entrepreneurs more control over their business and confidence in making decisions. Keeping an eye on key metrics like cash flow, profit margin, and sales data makes it easier to grow. 

If you’re interested in learning more about business, leadership, and entrepreneurship through a college degree, check out the Kantner Foundation Scholarship—it’s a great opportunity to showcase your skills and take the next step in your journey.