Most businesses aim to increase profits and grow from where they are currently, very few are happy to stay still. The thing is, how do you actually measure if your business is growing?
There are many ways to assess whether your business is making positive steps forward, and some of them are purely visible. For instance, do you find yourself with spare cash every month to be able to upgrade to luxury office furniture? That is one way to tell whether or not you’re doing well!
There are a few other, more solid measurement tools however.
- At the start, define the goals you want to achieve in the long-term and decide how you’re going to measure them
- Decide on the performance measurements you’re going to use, e.g. sales, marketing statistics, market share, etc.
- What is your goal income and what is your current income? Are you far away from it?
- Compare yourself against your main competitors
- Measure how effective your marketing strategies are currently, are they working?
- Measure your employee performance and turnover rates; have you had a need to employ more staff? Has your need for more office furniture increased?
These are all ways to measure business growth. It’s important to analyse these performance indicators, usually as a group around a circular conference table, to see if you are on track to achieve your yearly aims. By readdressing your aims on a regular basis, you can ensure that you are going in the right direction.
Can you think of any other useful growth measurement tools?