Start with a decision
An indicator exists to support a decision. Ask which decision it will inform: reallocating resources, revising a process, adjusting a target. Without a related decision, it may serve no purpose.
Begin with available data
Start with what you already measure, even imperfectly. A simple indicator tracked regularly is worth more than an ideal one nobody has time to produce.
Name an owner and a frequency
Each indicator needs someone who updates it and a moment when it is discussed. For many small businesses, a monthly review of a few indicators is enough.
Keep the number small
Beyond a dozen indicators, attention scatters. Keep the ones that led to a decision in recent months and drop the rest.
These general perspectives are not legal or financial advice.