Updated: Nov 26, 2019
Almost anyone successful would tell you to have a plan when it comes to measuring business success. Here are just a few methods of measuring business performance at your company. Always keep close to the chest it’s the details that last the length not the other way around.
Look At Your Business’s Financial Statements
When you think about measuring the success of your small business, you need to see how much money it’s generating. Obviously, money is important when you run a business. Without it, your business is done. With it, you can grow your business and continue pursuing your entrepreneurial dream. How much money is going in and out of your business?
The three main financial statements you can use at your small business are the income statement, balance sheet, and cash flow statement.
The income statement measures the profitability of your business during a certain time period by showing your business’s profits and losses.
The balance sheet shows your business’s financial health, measuring how much you owe and own.
The cash flow statement shows how liquid cash is at your business.
Measuring business performance means checking out the money flow of your business. If you want to see how profitable your business is, check out the financial statements.
Check Customer Satisfaction
One important measurement of small business success is customer satisfaction. If your customers aren’t satisfied after buying from your business, they probably won’t do it again.
How do you measure customer satisfaction? There are a few different ways, including through surveys, reviews, or even asking, “Did you find everything you were looking for?”
Take control of your content, we pride ourselves on excellent customer satisfaction. We are all about reviews and making sure that our customers are happy with the services we provide. When we a review, we turn it into engagement. That way, others know what real people have to say about our products. Customers help us improve our products. My customers know what they need, and I learn how to satisfy their needs by listening to them. Many of the features we add to our sSevices are because of customer requests.
Average How Many New Customers You Get
Knowing how many new customers you get is a great way to measure your business’s success and predict growth. If your business is stagnant with the same 25 customers, you might need to kick up your marketing strategy.
See if the people buying from your business are existing customers. Develop a client list with email addresses to track customers. That way, you can easily count the number of new customers per month or year.
Average how many customers you get from each new business action, like adding products or upping your marketing efforts. By averaging your new customers every so often, you can measure how successful your business is at drawing in new people.
Conduct Performance Reviews
Let’s not forget about your employees. Employees are essential — without them, you would have a hard time running and growing your business. One way to measure business success is through conducting performance reviews to see how your employees are doing.
I try to conduct performance reviews twice a year(usually on myself now). Previously they let me see how happy my employees are at their jobs, as well as how effectively they complete tasks. Performance reviews help employees see what they need to improve and gives me further insight into their workload.
For example, you might have an employee who has extra time on their hands. Through the performance review, you find out that the employee is unhappy because they want more responsibilities. You can then delegate more tasks to that employee to make them happier and increase workplace productivity without increasing the number of workers on payroll.
Stay Current on the Market
Sometimes, you need to know how the market is doing in order to measure the success of your own business. If you and your competitors aren’t doing well, it might be because there is a lull in the market.
Don’t be down if your business’s profitability decreases. It might be a result of the national market and out of your control. Decreased profitability could be a good time to introduce new products if demand for your current product or service is put on hold.
Assess Your Own Expectations
How do you feel about the success of your business? According to one study, 55% of small business owners are satisfied with being a small business owner.
You might not think about it, but assessing your own happiness is important when measuring your business success.
When I measure my business’s success, I try to consider my perception. How do I feel the business is doing? I know the numbers are good, but are they where I want them to be? Make sure you’re happy with your progress to encourage all-around success.