As an entrepreneur, you must continuously check the progress of your business. You need to measure your business performance to know what works and what doesn’t. So how do you measure the success of a business? In this article we look at how to measure business growth.
Look at your business’s financial statement
Money is an essential factor when running a business. To measure success, you need to determine how much money your business is generating, how much is going in, and how much is getting out. Balance sheets, income statements, and your small business cash flow will help you determine your business’s profitability.
How many new customers do you get?
Customer loyalty is great, but if you are only selling to the same 25 customers you started with, something needs to be done. New customers mean that you are penetrating the market well, which means that your business is growing. The average number of customers you get every so often is a measure of how successful your business is at attracting new people.
Check customer performance
Customer satisfaction is crucial in business growth. If customers aren’t satisfied with your products and services, they won’t come back again. To measure customer satisfaction, conduct surveys, check customer reviews or ask your customers about their shopping experience with you. They will provide you with crucial information on what needs improving and how to do it.
Stay up to date on the market
Check on other industry players to see how they are performing. When you know how the market is doing, you can access your own performance. If there is a lull in the market, don’t worry too much if your profitability decreases. However, if business is booming in your industry, but you are struggling, then there is a problem.
Assess your own expectations
Your opinion is very important when assessing the success of your small business. Have you hit your targets? Are you happy with how your business is doing? Is your business where you wish it to be? Do regular evaluations to see how you can improve the performance of your business as the owner and leader. If you are happy with the progress, you will be motivated to grow even more.
How to measure business growth – where to find out more
Established since 1989, Tower Leasing Ltd is a funder with the support of brokerage facilities which enable companies across the UK to acquire much needed capital equipment through leasing. We create the opportunity for businesses to manage their cash flow whilst being able to secure the latest assets and technology which enables our customers to stay competitive within the market. Our services also provide the capability to deliver additional funding to support your business growth with our wide range of finance solutions. Listed 30 in THAMES VALLEY 100 SME GROWTH 2020.