For many business owners, success comes down to profit. Finances are an important measure – if you don’t bring in more than you spend, you won’t be in business for long – but profit isn’t the only benchmark worth measuring. There are other factors that tell you how well your company is doing now and predict its future success.
Measure customer satisfaction
Customer satisfaction tells you a lot about how much repeat business to expect. Measure it by asking in person or sending surveys. Take pleasure in positive feedback, and when customers suggest improvements, listen – even unsatisfied customers value feeling heard, and constructive changes may bring them back.
Measure the number of new customers
You can’t rely on repeat customers forever – priorities and circumstances change. Track new clients with an email list, use a loyalty program to distinguish repeat from new customers, and consider a referral program that rewards existing customers for bringing in new business.
Measure employee satisfaction
Happy employees are as vital as happy customers. Employee satisfaction indicates how motivated your staff are (which affects customer satisfaction) and helps predict turnover. Use regular performance reviews to understand strengths and areas to improve, and offer professional development – it’s costly and time-consuming to recruit and train new staff.
Final thoughts
Keep track of your financial health – your income statement, balance sheet and cash flow statement. But also measure how satisfied your customers and employees are, and how many new customers you attract, to gauge your current and future success.