There are a number of ways which business growth can be measured, and they don’t all have to do with sales volume. There are external factors of course, like sales and customer demand, but there are also some internal measures which can be evaluated, such as the number of employees you have, or the increasing figures on your financial documents. In any case, each of the different metrics for business growth reveals some aspect of your business which provides an indicator of how well you’re doing.
Here are six realistic ways of measuring how well your business is doing.
Probably one of the key factors in determining business growth is how great a demand there is for your products or services. By determining the level of customer demand you have in your market, you’ll have a good idea of what your potential for growth is with your small business.
Revenue is generally a solid indicator of business growth, even if cash is fairly tight for your business. When your overall revenue numbers are steadily increasing, that’s a good sign that your business is on a growth path.
Profits and losses
A close examination of your company’s financial records, e.g. cash flow statement, balance sheet, and income statement, should let you know what your profits and losses are. If you consistently show more profits than losses on your financial documents, that’s one good indicator of business growth.
Another good indicator of how well your business is doing is your share of the local market. Assuming you have a sizable market to grow into in your local area, you’ll want to know how well you’re doing against your competitors, to know whether or not you have the potential for growth in your area.
A big part of your business success has to do with the employees on your staff, and how well you’re doing at retaining key employees. When your team is growing steadily, that’s generally a good indication that your business is also growing, because it’s necessary to meet the demand of business requirements.
In addition to profits and revenue, sales are a big part of determining whether or not your business is growing. When your sales team is having trouble keeping up with all the leads they have, or if they’re closing more deals than account managers can deal with, that’s a good indication that your business is growing.
Does your small business need funding for growth?
Sometimes all that’s needed in order for a small business to realize true growth in its market, is to have the funding which will help fuel that growth. Contact us at Goldendale Capital if your small business is in need of capital which will help to grow your business.