5 Leading Indicators Every Business Owner Must Track
11 min
Josh Hadley noticed a costly contradiction: his supply-chain team’s leading indicators were all green, yet inventory was growing faster than sales. In this episode, he explains how tracking the wrong “green” metrics can hide trouble until it shows up in revenue and profit and how comparing weekly actions with monthly financial results helped expose the problem before it got worse. He shares practical examples from ad production, including targets for new concepts, AI videos, static images, and winning ads, then shows how to test whether those activities actually predict results. He also explains why inventory can become an e-commerce brand’s Kryptonite and why revenue and profit may reflect decisions made six months earlier. Bullet Points: The difference between leading indicators and lagging metrics in businessHow daily actions can predict longer-term outcomes, illustrated through a weight-management exampleSelecting and tracking weekly leading indicators for areas such as media buying and creative productionUsing hypotheses and AI to identify and validate useful leading indicatorsComparing leading indicators with financial results to spot performance gapsResponding to market and platform changes with specific actions rather than relying on external explanationsMonitoring inventory growth against sales growth as an early warning of supply-chain problemsReviewing monthly profit-and-loss statements alongside operational metricsImproving inventory management processes to prevent excess stock and protect profitabilityTimestamps: 00:00:00 Leading Indicators vs. Lagging MetricsIntroduces why businesses should track leading indicators to predict revenue and profit. 00:01:01 A Weight-Loss Example of Leading IndicatorsUses calories, food choices, and steps to show how actions can predict changes in weight. 00:03:05 Revenue and Profit as Lagging IndicatorsExplains why financial results can take months to reflect business decisions and introduces the weekly High Five tracker....