Determining the success of your business isn’t exactly an easy thing to do.
It can be difficult to know what you should be measuring and looking out to find out whether you’re doing the right things. If you concentrate too much on any one factor, you could neglect other things that might indicate you’re not doing as well as you thought.
If you want to measure the success of your business, you can start by asking a number of questions. By finding the answers to these questions, you can determine if your business is going in the right way. Here are some of the things you should ask yourself to analyze your business success.
Are you meeting your targets and goals?
When you launched your business, you should have thought about the goals and objectives you wanted to meet. And these aims should be updated as your business grows so that you always have something new to strive for. Ask yourself whether you’re meeting the goals you set and if not, what could you be doing wrong?
If you’re not nailing all your objectives, it doesn’t mean that business isn’t successful or on its way to being successful. Every business can have targets it fails to meet, even when things are going well overall. But if you’re consistently failing to fulfil your goals, you might need to rethink something.
Are you profitable or getting there?
Of course, whether your business is making money is important. Some businesses are able to start making money relatively quickly, whereas others can take longer to start turning a profit. Your business doesn’t necessarily have to be profitable yet to be deemed successful, but you should have a clear plan and an idea of when you’re going to be making a profit. And if you are making a profit, you should be looking at how much you’re making, and whether it’s in line with your expectations. Some businesses can make mistakes at the beginning that require them to adjust their prices or their expenses later on.
Are your employees satisfied?
Whether your employees are happy is a key way to tell how successful your business is. It’s not a definitive factor, as you could be making your employees happy by spending too much money on them. But it is one way you can determine if you’re doing well. If your employees dread coming into work every day, you might not want to rush to deem your company successful, even if you’re making money. If you want to know whether your staff is satisfied, you can gather employee feedback to find out how they like working for you.
How do you stack up against your competitors?
Comparing your company to your competitors too much isn’t necessarily helpful. You don’t want to copy everything they do or be too concerned about what their next move is. However, taking a look at how you compare to them is one way you can determine your business’s success. How does your product perform against its closest competitors? What do consumers like about your product compared to theirs? What sort of ratings and reviews do your competitors get and what do yours look like against theirs? These sorts of things will help you to keep up with them, while still maintaining your brand.
Would your customers recommend your company?
One of the best ways you can find out if your business is successful is to ask whether your customers would recommend you to people they know. You might have heard of net promoter score (NPS) as a measure of success for a business. But what is net promoter score? Essentially, it asks the question of whether your customers will recommend your brand or product to a friend. You can find out if they’re willing to promote you by asking this one simple question, making it low-effort for them. You can then split them into people who are promoters, passives, and detractors. The NPS is the percentage of promoters minus the percentage of detractors.
Are you able to keep customers?
Another question to ask of your customers is whether you’re able to retain them. Are they willing to stick around after they have bought a product or service from you? If they’re willing to come back, you know they were satisfied with the product and service they received last time. Loyal customers keep coming back to spend money with you, and they recommend you to other people as well. Of course, this works best for businesses that sell products that can be bought multiple times. Some companies have products or services intended to be used once or very rarely.
What do your leads and conversions look like?
Take a look at both your leads and your conversion rates to determine whether you’re having success with your marketing and sales, among other factors. Are you getting the number of leads you were hoping to? If you’re not sure how many you should be getting, it might be time to think about setting some goals. Conversions are important too. There’s no point collecting lots of leads if they don’t go anywhere. If you’re getting many leads but struggling to turn them into sales, you need to consider how valuable the leads are and whether your conversion approach is working.
What’s your online reputation like?
Your business’s online image means a lot these days. People will look at your website, your social media presence and your listings on various other sites to determine the quality of your products and service. You should closely examine the response you get online to see what people think of you. Pay attention to ratings and reviews, as well as how people interact with your social media profiles. A strong online business image can make a huge difference to your success, especially for small businesses. Make sure you’re not neglecting it when you examine your company’s progress.
Pay attention to ratings and reviews, as well as how people interact with your social media profiles. A strong online business image can make a huge difference to your success, especially for small businesses. Make sure you’re not neglecting it when you examine your company’s progress.
Look at your business from a number of angles when you’re trying to decide how successful it is. You need to consider a few different factors to see if it’s really as good as you think.