Business success is way more than just financial success. Yes, profitability is important, but there are a whole lot of other factors to consider as well. Here are some key indicators that show that your business is growing.
Profit is probably the first thing people think about when it comes to measuring how successful their business is. If you earn money consistently from your business and what you earn is sufficient to cover all your expenses while leaving you some extra cash to save; it means that your business is doing well.
Increasing client population.
A growing customer base shows that your business is successful. If you’re able to attract new customers while retaining the old ones, then your marketing and operational strategies are successfully attracting more of your target market.
Keep doing things that keep your clients happy. Positive feedback and referrals from them will go a long way in helping your business. Actively try to create opportunities for customers to leave comments and feedback.
Rapid inventory turnover.
If you find out that you’re constantly running out of stock and you need to restock very often, then you should consider expanding your business because it is growing (all other factors remaining constant).
The team is busy. And happy.
Take a look at how full your bookings are, how busy your salespeople and account managers are and how many people are working overtime.
Incentives that reward hard work motivate workers to be more progressive and productive. When there are good incentives in place, present team members will put in their best and cream of the crop outsiders (in form of employees and investors) will be attracted to the business.
You’re getting popular.
It could be a potential investor wanting to invest in your business, or enthusiastic customers begging you to expand your business. Pay attention to the feedback you get from clients, friends, and advisers. They help you.
If your revenue you’re making in business is steadily increasing, but profits are stagnant, analyze where you can check your expenditure, operating costs or losses to see where they can be lowered to bridge the gap.
When a sales team has more leads than they can call, or your team is closing more deals than your product and account managers can handle, there’s a good chance your business is growing.
Increased sales are usually a sign that it’s time to expand in order to accommodate new customers or accounts.
Depending on your industry and geographical location, how much market share you have could be an additional key indicator of how fast your company is growing, and how much growth potential there is in the existing market.
Study direct competitors of the same size; check their recent updates, look out for new locations, products, or partnerships. Yes, you’re allowed to stalk them. Check out their websites, blogs and social media pages.
Competition is good for your business. Then, try to figure out how big the market is, and whether or not the number of potential customers is growing.
Whatever the assessment of your business is telling you, please capitalize on what is going on well, and work on areas that could use improvement. It could be the quality of your products or services, a great sales team, or good customer service.
Seize growth opportunities and be sure to remove inhibiting factors, like hiring wrong staff and spending unnecessarily. Know that growth is also a risk. No matter how big your business grows, operating efficiently and delivering quality services should remain top of mind to sustain growth.
All the best in your business!