Disclaimer: The articles published here on the City of Eau Claire Economic Development Division website are meant to be a helpful starting point as you explore doing business in our community. They’re not the final word on rules, requirements, or what’s best for your unique situation. We always recommend checking in with legal, financial, or other professionals for advice tailored to your business.
Starting a business in Eau Claire comes with a mix of energy and uncertainty since you’re probably already wearing more hats than you expected.
From finding customers to building new routines, it’s easy to lose sight of what’s actually moving the needle amid all of that motion. Not every number deserves your attention, especially in your first year, so the goal isn’t to track everything, but to track the right things.
Let’s dive into how to zero in on the metrics that matter most for your new Eau Claire business.
1. Cash Flow: The Lifeblood
Every business owner hears about cash flow, but during your first year, it’s not just an accounting term. It’s survival. Cash flow is the steady rhythm of money coming in from sales and going out for expenses. When that rhythm breaks, even the most promising business can stumble.
What To Track
- Monthly Net Cash Flow: Start simple by asking yourself how much money came in versus how much went out this month. The goal is to stay cash positive, or to at least know when you’re dipping into reserves.
- Days of Cash on Hand: If you stopped bringing in revenue today, how long could you keep operating? Knowing this metric helps you sleep a little better and make smarter decisions.
- Big Upcoming Outflows: Equipment purchases, lease deposits, or seasonal restocking can hit hard. Plan for them early so they don’t catch you off guard.
Why It Matters
In Eau Claire, where the seasons and student schedules can sharply shape buying habits, staying on top of cash flow is especially important because it can help you plan for shifts in sales instead of reacting to them. For example, if you’re running a coffee shop near Phoenix Park, sales might climb with summer events and weekend markets but then dip once the weather cools. Meanwhile, a retail shop near campus might see the opposite, thriving during the school year but quieter in June when students aren’t around. Recognizing those patterns early helps you spread out expenses and build a cash buffer, ensuring you can pay yourself, your staff, and your suppliers year-round.
Where To Start
Create a simple month-by-month cash flow tracker. Nothing fancy necessary—just a spreadsheet showing projected income and expenses alongside what actually happened. Review it regularly, not just at tax time, and by month six, you’ll start to see clear trends: which months are flush, which are tight, where you can make small adjustments, etc. This will help keep your business steady through Eau Claire’s changing seasons.
2. Break-Even Point & Burn Rate
Every entrepreneur dreams of the moment their business starts paying for itself—the day revenue finally matches expenses. That’s your break-even point, and it’s a powerful milestone because it tells you, “We made it through the startup stretch.” Paired with that is your burn rate, or how quickly you’re spending your available cash before profits fully roll in. Keeping an eye on both helps you avoid the all-too-common “We’re growing, but where’s the money?” problem.
In your first year, cash can feel like it’s vanishing into thin air: rent, marketing, supplies, insurance, maybe payroll too. Tracking how long your runway is helps you make smarter decisions and sleep better at night.
What To Track
- Fixed Costs: These stay the same each month; think rent, insurance, and salaries. They’re your non-negotiables.
- Variable Costs: These fluctuate with sales volume—materials, shipping, hourly labor, packaging, or event fees.
- Monthly Total Expense Baseline: Add up both fixed and variable costs to see your all-in monthly spend.
- Break-Even Revenue Level: Divide your fixed costs by your gross margin to figure out how much you need to earn to cover everything.
- Burn Rate: Track how much of your startup capital or savings you’re spending each month before consistent profits arrive.
Why It Matters
Eau Claire’s business rhythm isn’t the same every month due to seasonal changes especially. Just like cash flow, knowing your break-even point and burn rate lets you plan ahead for those slower stretches instead of scrambling to cover costs. You’ll also gain a clearer picture of when to push or pause—maybe you double down on marketing before the farmers market season or hold back on big purchases until after the winter lull.
Where To Start
Post your break-even number somewhere visible, either on your desk, a whiteboard, or inside your bookkeeping software. Check it monthly. If your expenses start creeping too close to that line, look for quick adjustments: a short-term promotion, a temporary staffing shift, a seasonal pop-up, etc. The earlier you spot warning signs, the easier it is to steer back toward stability.
3. Gross Margin & Product or Service Mix
Seeing your first revenue coming in feels exciting. It’s the number that shows growth and momentum, after all, but revenue alone doesn’t tell the full story. What really matters is how much of that money you keep after covering your costs. That’s your gross margin, and it’s one of the clearest signs of your business’s health in year one.
Think of it like this: Revenue shows how popular your business is, but margin shows how strong it is. If your best-selling product or service doesn’t actually leave much profit after inventory, materials, labor, and supplies, then growth might just mean running faster on a treadmill. Year one is the perfect time to experiment and fine-tune your mix. Which offerings bring in steady income? Which ones drain time and cash without much payoff? You’ll learn fast by tracking the numbers behind each sale.
What To Track
- Gross Margin: Calculate it by taking your revenue minus your cost of goods sold (COGS), then dividing by revenue. The higher the percentage, the healthier your business.
- Profit Per Product or Service: Look at each item individually. A service might take little overhead but lots of time—does it balance out?
- Sales by Product or Service Line: Identify which categories carry your business and which lag behind.
- Seasonal or Monthly Shifts: Track when certain offerings perform best. Some products might shine in summer or during holiday traffic, while others dip.
Why It Matters
Along with money coming in and out, the quirks of Eau Claire’s market, shaped by tourism, university schedules, community events, and weather, can affect your margin and product mix too. Understanding your mix helps you stay nimble, giving you insight into whether you should consider spotlighting profitable items during peak seasons, bundling slow sellers with top performers, or cutting underperformers altogether before they drain your cash flow.
Where To Start
Every few months, review your products or services side by side to see how much revenue they generate, how much they cost you, and how much time they take to maintain. You might discover that your “bestseller” isn’t your biggest earner. If an item sells constantly but barely covers its costs, consider raising the price or swapping it out for something that gives you breathing room. The goal isn’t to sell everything at the same level; it’s to sell smart.
4. Customer Acquisition & Retention
Getting your first few customers feels like striking gold, and it is. But what separates a busy opening month from long-term success is whether those customers come back again and again. Year one is your testing ground to figure out who your audience really is, how they’re finding you, and what keeps them engaged.
What To Track
- Number of New Customers or Clients Per Month: A steady trickle beats one big spike. Consistent growth means your marketing is working and word is spreading.
- Where Customers Come From: Did they find you through social media, a Chamber event, a friend’s recommendation? Tracking this tells you which efforts are paying off and which can be trimmed.
- Repeat Purchase or Visit Rate: Measure how many of your customers return. It’s cheaper to keep an existing customer than to find a new one, so this number says a lot about your service and experience.
- Cost to Acquire a Customer (CAC): Add up what you spend on marketing in a given period and divide by the number of new customers that month. If your CAC is higher than the revenue you earn per customer, it’s time to refine your strategy.
Why It Matters
You’ll quickly learn that Eau Claire residents love supporting local, if you give them a reason to remember you. That means relationships can be one of your biggest marketing tools here, so making a great first impression, say out at a community event or online, can lead to months of repeat business. The same goes for collaboration too; cross-promotions with nearby shops or cafés can help both of you attract loyal local audiences.
Where To Start
Start tracking your customer interactions early, even if it’s just in a simple Google Sheet or low-cost CRM. Add columns for how they found you, when they last purchased something, what they bought, and whether they’ve come back. Over time, you’ll start to see patterns, like which marketing channels drive repeat customers versus one-time visitors. Use that insight to invest your time and money where it actually counts.
5. Customer Feedback & Net Promoter Score (NPS)
In year one, numbers like revenue and cash flow tell part of your story, while your customers’ feelings fill in the rest. The way people talk about your business both online and around town can shape your reputation faster than any marketing campaign. That’s why tracking customer feedback isn’t optional; it’s one of your most valuable tools for improvement.
Listening closely helps you fine-tune what you offer, how you communicate with customers, and how they experience your brand. A simple, structured way to measure that loyalty is through your Net Promoter Score (NPS), a single question that packs a surprising amount of insight.
What To Track
- NPS: Ask customers, “On a scale of 0-10, how likely are you to recommend us to a friend or colleague?” Then subtract the percentage of detractors (0-6) from promoters (9-10). You’ll end up with a score between -100 and +100. That’s your Net Promoter Score, and the higher, the better.
- Qualitative Comments: Don’t just collect scores; read what people say too. Are they raving about your service? Complaining about parking? That context matters.
- Time to Resolution: When a customer has a problem, how fast do you make it right? Quick, thoughtful responses build trust.
- Repeat Business or Promotions Tied to Feedback: Track whether improvements you make actually bring people back. If you fix an issue and see repeat customers climb, you’re on the right track.
Why It Matters
Eau Claire locals notice when a business treats them well, and they talk about it. A positive reputation can ripple through referrals, networking events, neighborhood conversations, and beyond. The same goes for poor experiences; one unresolved issue can echo louder than you’d like. By keeping tabs on feedback and your NPS, you’ll be investing in your community standing. And in a place as connected as small-town Wisconsin, that goodwill can translate into long-term staying power.
Where To Start
After a purchase, send a quick follow-up message, maybe on a receipt or in an order confirmation email. A simple question like, “How likely are you to recommend us to a friend?” or “What’s one thing we could do better?” Keep it short and personal; your customers are busy, and a genuine tone goes a long way. Review responses regularly, share them with your team if you have one, and celebrate the wins while learning from the misses.
6. Team Productivity & Cultural Fit
Even if you’re starting small with one part-timer or a few contractors helping out on weekends, your team shapes both how your business runs and how it feels to customers. Productivity matters, of course, but so does personality. That means the people you hire to represent your brand should reflect the values and energy you want Eau Claire to associate with your business.
To keep a pulse on what customers are experiencing, you’ll want to track staff performance in year one, but that doesn’t mean micromanaging. Your goal here is to understand what’s working and what’s slowing progress or draining morale.
What To Track
- Hours or Output Per Staff/Contractor: Keep an eye on how long tasks take or how much work gets done per shift or project. Try to spot patterns and set realistic expectations.
- Revenue (or Impact) Per Hour: This helps you see if the time and money you invest in staff or contractors are translating into results.
- Training Cost Per New Hire: Include both time and money. If turnover is high, this number adds up fast.
- Employee Feedback & Satisfaction: Ask how things are going. Are they feeling supported and clear about what’s expected? A short survey or casual check-in works just fine.
- Turnover Rate: Even if you only have one or two employees, note how often people leave or contracts end early. That churn can cost more than it seems.
Why It Matters
The barista who remembers names, the retail clerk who greets every shopper with a genuine smile, the contractor who delivers great work on deadline—all of them shape how the Eau Claire community sees your business. A positive, consistent team builds loyalty faster than any marketing campaign, so if you notice turnover creeping up or morale dipping, take it seriously. In a smaller labor market like ours, good people are worth keeping. Investing in their training and well-being early on builds a culture that can carry you into year two and beyond.
Where To Start
Do a simple 90-day check-in with every new hire or contractor. Ask what’s working, what’s confusing, what would make their job easier, etc. It doesn’t have to be formal—just a conversation after a shift. The earlier you spot misalignments, the easier they are to fix. Plus, you’ll build trust, prevent burnout, and make sure your growing team reflects the welcoming, collaborative spirit that defines Eau Claire’s business community.
7. Local Market & Seasonal Trends
Eau Claire’s rhythm beats to a mix of college semesters, outdoor seasons, and major events. If you’ve lived here long enough, you can probably sense the shifts: downtown buzzing in summer, slower foot traffic in late winter, a fresh surge when students return in the fall. Year one is your chance to start measuring those patterns so you can plan around them instead of being surprised by them.
What To Track
- Month-By-Month Sales Swing: Look for peaks and valleys. Which months bring in the most revenue? Which ones lag?
- Event-Driven Business: Eau Claire’s calendar is packed—festival weekends, home football games, downtown markets, and holiday shopping all drive local spending. Note when your numbers jump and connect them to what’s happening around town.
- Local Competition Changes: Keep an eye on new businesses, pricing shifts, or store openings that might affect your traffic. Sometimes a new neighbor brings collaboration opportunities, not just competition.
- Local Economic Indicators: Watch for city and regional updates on tourism numbers, housing developments, job growth, etc. More residents and visitors usually mean more potential customers.
Why It Matters
Timing and local awareness can make or break your early momentum in a smaller city like Eau Claire. If you track how your sales ebb and flow throughout the first year, you’ll quickly spot your “high tide” months and know when to build in breathing room. And by tracking community trends, you can adjust your operations before they catch you off guard. Plan promotions or extended hours when crowds are in town, then scale back or refresh during slower seasons. This not only helps your cash flow but also keeps your marketing and staffing balanced.
Where To Start
Use year one as your baseline. Track sales, traffic, and event-driven spikes each month, and jot down notes about what was happening in the community at the time. When you compare those numbers next year, you’ll start to see a clear rhythm unique to your business. Use that insight to set smarter sales goals, schedule product launches, or plan vacations during natural slowdowns, because running a business in Eau Claire is as much about knowing your market as it is about knowing your neighbors.
Final Thoughts
Year one will be full of surprises: some good, some “why didn’t I see that coming?” moments. But if you pick a handful of meaningful metrics to track like the ones listed here, you’ll build a clearer picture of how your business really works, rather than how you hope it works. By staying on top of these, you’ll not just survive year one too; you’ll learn to adapt and set the stage for a stronger year two.
Source: Article Cover Illustration by Freepik
About The Author
Kendall Williams
City of Eau Claire Economic Development Division
Kendall’s role is to champion local businesses at every stage of their journey. Whether it’s helping new entrepreneurs find the right location, supporting existing businesses as they grow, managing the City’s loan programs, or providing data to guide smart decisions, she’s all about making Eau Claire a place where businesses can thrive.
