When it comes to all things business, knowing your strengths and weaknesses is one of the most important features of a successful brand. Focusing on your strengths whilst working to improve your weaknesses is sure to improve your products and services, potentially attracting more happy customers and therefore encouraging a greater amount of profit. Measuring your success in order to identify whether you have been able to meet your goals can seem tricky, as there are so many different features that are constantly changing and updating, making it tricky to figure out where to start. However, you needn’t have to suffer for much longer, as this guide details several of the most effective methods that make it possible to measure business success in no time at all. So, if you would like to find out more, then simply read on!
Step 1.) Check Your Financial Statements
When considering different methods that allow for the measurement of business success, one of the most obvious features that can be assessed is the total profit your team has made in a set amount of time. Of course, the money that you’re able to generate is of utmost importance when operating a business, as a lack of profit leads to a lack of funds, meaning you simply cannot afford to open your doors once more. Making the most of your financial information can change your direction entirely, allowing you to push in the right direction whilst focusing on improving your weaknesses in order to love forward. Finding all of your sales metrics at one place makes it so much easier, but you may need to seek out extra support to achieve such a step. So, just how much cash has been flowing in and out of your business? There’s no time like the present to check.
There are 3 essential financial statements that every business has access to, and you should aim to use these resources to complete your research. These 3 statements include your in one statement, your cash flow statement and your balance sheet.
- Income Statement – helps to identify your total income by deducting your total costs from your profits.
- Balance Sheet – represents your brand’s overall financial health, showing how much cash you owe and how much you own.
- Cash Flow Statement – allows you to see how money moves throughout your business, whether it flows freely like liquid or is being funnelled into one specific area.
2.) Asses Customer Satisfaction
Another essential measurement of business success that you must make the most of is customer satisfaction levels. Unhappy customers will not be prepared to shop inside your store if they have even one singular bad experience, so you must do all you can to keep your clients happy and content no matter what happens. Measuring customer satisfaction can be a little tricky, as it isn’t always easy to get your customers to willingly give up their opinions and ideas. It’s a good idea to explore options such as surveys and reviews, but you can even simply finish off your in-store conversation by questioning – ‘did you manage to find everything you were looking for today?’. There’s no easier way to find out about customer wants and needs then approaching these individuals yourself to pose the question, so take the time to utilise customer satisfaction data to quantify your business success.
3.) Work Out Your Total Number Of New Customers
Being aware of just how many new customers your business attracts and benefits from each day is a brilliant way to find out more about your brand’s success whilst helping to predict and prepare for future growth. If you find that your brand is getting pretty stale with the same 3 or 4 customers buying their usual favourites you may wish to begin thinking up ways to improve your marketing strategy. Identify whether those ordering from your brand are new customers or previous clients by checking against their personal information, and create your own handy email list packed full with email addresses to help you track the total number of customers not easily. Consider the specific times during which your business sees an increase in customers, as you can then build links and strong associations between your commercial actions and their effects on your target audience.
4.) Focus On Reviewing Staff Performance
Your employees contribute massively towards your overall success. They are absolutely essential inside your brand, as without their support you would likely have an extremely tough time trying to run and grow your operations to achieve respectable profits. A great method that you can utilise to review staff performance is through nothing other than a ‘performance review’ that allows you to sit down and discuss your team members strengths and weaknesses to move forward in a more productive and profitable manner. It’s a good idea to aim to carry out performance reviews at least once every 6 months, as personal circumstances can change dramatically during this time and you must be able to pick up on any discrepancies or issues sooner rather than later. Performance reviews can be of real benefit for employees who wish to improve their skills, as the helpful insights can guide them to focus their efforts into the right area.
5.) Get Clued Up On Competition & The Industry As A Whole
Oftentimes you won’t be able to identify how successful your business has become without checking it against both the competition and the industry itself. You really do need to know exactly how the general market is performing to measure the total success of your own business, as a lack of orders and profits during a certain period could be due to a dip in the market. You needn’t fret if your overall profitability starts to see a dip along with a large proportion of your competition, as this proves there’s been a change in the market itself which is well and truly out of your hands. Times of low profit and little attention are the ideal opportunity to introduce a few new products that can excite your target audience.