“Success” is a term which is thrown around often. What is success and how do you measure it? How come perception of success varies from one person to another? Is it tangible? How would you really know if your business is successful? What are the key metrics? In this article, we will be discussing key indicators of success in business.
Profit
One way to measure if a business is performing well is related to the fact if it is making money or not. This practically refers to the money left after covering all of your expenses. Whilst making a profit can be difficult for a business which is still in its formative years, the measure of success is actually making money for over a year. This will then need to be followed by creating sustainable profitability which caters for the long-term.
Customers
All businesses need customers to survive. Very rarely would you hear that a business has had enough customers. The element of success in this regard would be to consistently grow your customer base. This is indeed another mark of sustainability which shows that there is the necessary demand for what a business is offering. Apart from the number of customers, another key metric of success would be the satisfaction levels of those clients. Are your customers happy with the service offered to them? What is the percentage of return Customers/ Clients? This metric is intrinsically linked to the viability of your business.
Some measures of success can indeed be quantified, however, others are more of a qualitative nature. Profits and customer satisfaction reports can indeed be identified, however, there are some things such as job satisfaction which may be more complicated to quantify. What is your idea of business success? Do you think there are other criteria worth mentioning? Let us know in the comments section below.
