The key to a successful business is knowing how to measure it. Take billionaire, entrepreneur, Sir James Dyson, who famously said “failure is so much more interesting because you learn from it.”
You cannot afford to sit back, you must be measuring your business at all times, you see, every step forward, and step back, must be learnt from. Your business will likely change every day - new challenges, new achievements - instead of fearing these, embrace them!
The only guarantee in life, is change. Here are 5 ways you can measure your businesses’ success:
1. Measure your Goals
Every business must have goals but they need to be achievable, otherwise you will become despondent. What’s more, your team need to be aware of these goals. Additionally, it’s critical you review these goals – business goals need to change in line with movement in your industry, the market place and economy.
2. Measure your Cashflow
Are you able to have a continual, fluid cashflow? Have you got monies for working capital?
If the answer is no to these questions, look at T&C with suppliers to see if you can negotiate better terms of payment or supply. If you suffer from late paying customers, consider invoice finance to advance monies on issued invoices.
3. Measure Customer Satisfaction
Your customers are hugely important, without them there’s no business. Are they happy? Carry out customer satisfaction surveys. Call them periodically just to check how things are going for them. Have the personal touch – call or pop in, it’s far more effective and powerful than impersonal emails.
Top Tip: If you get amazing customer feedback, shout about it! Write a blog article, ask for a testimonial and use it to bring in more business.
4. Measure your Growth
It’s critical to know where the bulk of your business comes from. If it’s from the same few customers you need to branch out – all your eggs in one basket can be dangerous. Analyse these customers; their need, worth, how and when they became customers. Also look at ad hoc and continuous customers, why are some loyal, others sporadic? Take this data and plough it into new marketing plans to target relevant new customers.
5. Measure your Assets
Assets include people as well as machinery and technologies. Do you have enough workforce, are they qualified enough, do they need additional training, do you need to employee specialists? Is your equipment, machinery and technologies as productive as it could be, upgrades, whilst an outgoing, could massively increase productivity and output.
As award winning providers of the UK’s favourite alternative finance to SMEs call us today for a quote on invoice finance.