PROFITS! All because at the end of the day, profit is all that matters.
According to one study, 55% of small business owners are dissatisfied with the profits they’ve earned.
Are you too disappointed with the profits you’re making? Want to make more in the coming year? Right then, this piece of information is just for you.
Although that business is unpredictable, it is important to see what works at your business and what doesn’t. You need to constantly measure your business performance so you know what’s successful and what isn’t. So, how do you measure small business success?
Here are just a few methods of measuring business performance at your company:
See how much money your business is generating. Obviously, money is the most important thing when you run a business. Without it, your business is done. Your first step is to know how much money is going in and out of your business? Check your cash flow report and balance sheet to find out this information. If you’re not using accounting software to record your transactions, this becomes a little extra effort. Better start digital, coming year onwards.
Customer satisfaction must be your top priority, no matter how big or small your business is. If your customers aren’t satisfied after buying from your business, they probably won’t do it again. Customers help us improve our products. Only they can tell you what they need, which lets you learn how to satisfy their needs. Listen to them and act upon it.
You know that you’re doing great in business when you constantly get new customers. This is a great way to measure your business’s success and predict growth. If your business is stagnant with the same 100 customers, you might need to kick up your marketing strategy.
Maintain your party/client details like phone number, email ID to keep a track of them. This helps you differentiate between repeating and new customers.
Sometimes, you need to know how the market is doing in order to measure the success of your own business. If you and your competitors aren’t doing well, it might be because there is a drop in the market which out of your control.
Introduce new products if demand for your current product or service is put on hold. This helps you increase profitability.
Are you satisfied with your success?
How do you feel your business is doing?
Are you where you want to be?
This is what really matters. Your opinion!
Revisit above 1-5 tips and apply it to your business from day 1 of next year to improve your business profits.