Starting a small business is a risky venture: First, you’ve got to get it off the ground, and then you’ve got to help it grow.
How do you know if you’re on the right track?
Although measures of success vary, Pursuit has put together a list of some important indicators. These can help you recognize when you’re doing things well, and where you may need to make improvements.
1. Profits are greater than losses
While it’s not uncommon for some businesses to run at a loss early on, eventually all businesses need more money coming in than going out. If yours shows a profit, figure out what you’re doing right and expand on those things. And if your business has losses month after month, there may be problems that can be resolved with simple actions. For example, if high-cost debt is at the root of financial problems, check out Pursuit’s article on how to refinance business debt.
2. Steady growth
Increased demand for your products or services is a sign of a healthy business that could be ready for growth. Sometimes, however, that’s expensive, because growth may mean additional costs for staffing, inventory, new locations, and more. There are many funding options available for small businesses but it’s very important to understand your options. Take a look at this article about how to find the best source of small business funding.
3. Increased customer base
Understanding what your customers like about your business’s values and staying dedicated to those is important, as are offering high-quality services or products, and making it easy to do business with you. This Pursuit article, Top Marketing Tips for Your Small Business, will help you keep the customers you have and reach more people, too.
4. Positive company culture
A positive company culture with respect and optimism builds employee loyalty, and that saves you time and money on staff turnover.
5. Collaboration with other businesses
Collaborating with other businesses helps you reach more customers and build partnerships that benefit your business.
6. Effective customer engagement
Healthy digital-engagement rates can mean increased sales, too.
If your small business hits these benchmarks, enjoy your success – and then think of more goals to achieve in 2017. And if not, check out the linked information for useful ideas and resources that can help your business grow.