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Every businessmanlikes to imagine that they are successful, but do you really know how to determine whether your business has taken off? Depending on the nature of your business, you will need to regularly analyse your business’s overall performance on a monthly, quarterly or annual basis. There are many factors that can show you just how successful your business is, here are some of the easiest to implement:
#1 Are You Turning a Profit?
Sounds straightforward, but you’d be surprised by how many people don’t look at their actual profit. You need to take into account all your overheads, expenses and money set aside for future use etc. to clearly see how much profit you’re making. Compare the amount of profit you’re turning (if any) to your business plan to see how it matches up. If you’re doing better than planned then you can rest assured that your business is a success, if not then you may need to work out what areas can be improved on.
#2 Do Your Customers Come Back?
It isn’t all about how much money you’re making, it is also to do with how good the service you are providing actually is. One of the best ways to learn whether you’re providing a high quality service is by finding out how many of your customers repeatedly come back to your business. If there is a large percentage then this suggests that you’re delivering an excellent service that is probably better or cheaper than your competitors.
#3 Are Your Employees Happy?
No business has ever been successful with unhappy employees. They lose motivation and tend not to perform their job as well, which can cause disruptions further along the line – hindering the quality of your service. By having a third party carry out a survey or simply by arranging an anonymous questionnaire, you can gain a much greater understanding of how happy your employees are. The happier your employees, the more successful you’re likely to be.
#4 Compare to Your Plan
You can’t start up a business without having a plan in place. This plan should state exactly where you expect the company to be within certain time frames. To see just how much your business has progressed, compare reality to the business plan. If you’ve exceeded predicted growth then congratulations; you’re more successful than you thought you would be!
#5 Are You Better Than Competitors?
How you fare compared to your competitors can act as a very important benchmark for progress. Even if you aren’t turning a particularly large profit but have managed to dominate your niche market, then this should be considered to be vital progress. To become a successful business, profit sometimes has to take a back seat to becoming a market leader. If you’ve established your place as being better than your competitors then you should consider your business as being highly successful.
#6 Continuing to Grow
Is your business constantly looking to expand? Whether you’re looking at increasing your range of products, adding more services or simply taking your business to an international market, a growing business is a successful business. When your business is successful, as judged by the above criteria, then you should be looking at expanding your business further and becoming even more successful.
If you’re at the stage where you’re looking to expand and you want to ensure that you remain profitable, then talk to Pure Commercial Finance today to get the best rates on commercial mortgages. We do all the hard work so you can continue to focus on making sure that your business is fruitful.