How to Measure Success in a Small Business

Running a small business means trying out new strategies to accomplish your goals. Goals should always be measurable whether it is quantitative or qualitative. You should constantly evaluate how your business is doing and thinking of ways to improve it. Luckily, there are a few simple ways to measure the success of your small business.

Check Customer Satisfaction

Receiving honest and quality feedback on customer satisfaction is not always the easiest task. Feedback is not typically given unless customers are extremely satisfied or dissatisfied. Checking your customer satisfaction determines what your business is doing right, and what your business can do to improve. This is typically a qualitative result that needs to be analyzed.

The other reason that feedback from customers is given is that there is an incentive for them. Types of incentives include a free item, a percentage off, or the opportunity to win something through a drawing. Some ways to check on customer satisfaction is through survey links on receipts, a physical comment box in-store, social media polls, feedback through outside websites/vendors, emails, social media reviews, and in-person comments.

Review Sales and Financial Statements

Focus on how much revenue your business is generating. What are your profits and losses during certain periods? Make sure you are paying close attention to three financial statements: income, balance sheet, and cash flow. Measure sales by repeat business, growth, and overall goals.

Measure Customers

The amount of new and repeat customers is another form of calculating your business’s success. If your number of clients has stayed the same for too long, there may be something that you want to change with your marketing efforts. Measure repeat customers with loyalty programs. There are great customer retention metrics that you can use here.

Assess Your Expectations

As a business owner, it is important to be happy with how your business is running. Focus on what you want the numbers to be and how you feel with your business. Your happiness is a big part of your business’s success.

Create a Successful Business

With these tips, you can start measuring the success of the business strategies that you are implementing by measuring sales, financial statements, customers, and the satisfaction of yourself and customers. Each business favors different measuring tactics depending on their goals and business model.

PL Consulting has many years of experience in business planning, budgeting, profitability enhancement, and other bookkeeping services. We are here as your business’s go-to resource when you have questions. We customize our services to each of our clients and their business plans.

Please do not hesitate to reach out to us with any questions you have about measuring the success of your small business. We are available via phone at 410-764-3731 or on the website here.