After much stress along with your blood, sweat & tears, your business is finally off the ground. Now you have to face the big question, “Will my organization be a success?” While only time will truly tell, here are five methods to help you evaluate when measuring success in business for your organization.
Profitability year over year is likely the first thing business owners think about when measuring success in their business. Is the organization making money as opposed to losing money? This is not a wrong way to look at your business – if there is a profit left after you have covered your business expenses, then things are going in a positive direction for the company. Measuring success by profitability is a key factor in whether or not your company is going to make it over the long haul. If you find you are constantly in the red, your chances of success begin to decline each month. It is nearly impossible to stay in business if there is no money to continue operating.
An Increasing Client Base
In addition to success, an increase in the number of customers or clients you have is a sure sign that you are successfully meeting your goals. Giving your the right audience your focus and meeting their needs better than your competitors is what your business is all about. Without a growing base of clients, your success will be very limited. The long-term growth of your organization is linked with your ability to not only reach your current clients at the right time with the right message, but to grow and align with your long-term objectives. All of those extended hours invested on the analysis, market research and development of a product or service confirm themselves here. Did your analysis pay off? If not, it may be time to go back to the drawing board to see where you can make some changes in this area.
Satisfaction of the people who do business with you is a strong indicator that your organization is aware of the needs of your clients. If you truly understand your clients and are able to fulfill their needs, then you are dialed in to a great place. This factor is crucial to the strength of your organization. Keep in mind that one disappointed client can destroy the reputation of your company to several pleased clients – it happens all of the time. Having strong customer satisfaction will always add to the success of your organization and it is imperative to monitor this element of your company on a regular basis. This is easily done with customer surveys and simply by talking to your clients and asking them if they are happy with your services.
Employee fulfillment is another key signal you can use when measuring success in business. Creating a workplace that rewards and encourages employees in their efforts to do a job well is crucial in gaining and maintaining quality employees. If employees know they are valued, they are much more likely to go that step further when needed. Personnel are an essential part of your organization. They are often the face of your company and the ones who will touch your clients the most. Do everything within your power to ensure your employees remain satisfied in their jobs and you can rest assured that measure of success in your business is worth its weight in gold for your efforts.
Perhaps the most important measure of success in business for 2013 is whether you — the business owner — is happy with the results of the organization. If you yourself are not happy with your business, it certainly won’t be much longer until everyone else feels the same way. Find the source of your unhappiness if you are not satisfied with your organization as a whole and make serious efforts to change it. Success in your business means that you are content, happy, and excited and still believe in what your company stands for. That kind of attitude is contagious and will overflow to your employees and will show in all of your dealings with customers.
What other ways does your company measure success?