Running a business is always challenging, owners are constantly monitoring what works and what doesn’t. Business is unpredictable – that’s the simple truth. As a business owner, the only thing you can count on is that everything continuously changes. The need to constantly measure your business performance, is important to know what’s successful and what isn’t. So how do you measure your business success and no it’s not all about looking at the figures.
Develop Key Performance Indicators
Most businesses rely on their financial statements and sales results as their primary indicators for performance. By focusing on specific indicators, a business owner can measure performance against goals that have been identified and set. By setting certain goals and KPIs, allows the business to perform whilst also monitoring any potential warning signs where changes are necessary.
It is important to measure customer satisfaction, after all if customers aren’t buying, your business won’t do well. So how do you measure customer satisfaction? There are a few ways through surveys, reviews or even staff being more engaged in the customers by asking questions whilst in store (for example). Another key factor to look at with customer satisfaction is retention. Customers who keep coming back year after year are probably extremely happy with your product or service, and that means they’re just waiting to be activated as champions for your brand/product. Having strong retention numbers also means your business has the staying power to survive.
No business should forget about their employees. Employees are essential – without them, you would have a hard time running and growing your business. Conducting performance reviews on your staff allows you as the owner to measure how your employees are doing, check their workload, ensure they have adequate training and so on. 1 to 2 performance reviews each year is ideal to ensure your staff are happy and workplace productivity increases.
Keeping track of your results allows you as the owner to lay down effective groundwork for the future of your business. Measuring your results via sales, store traffic, online ordering, number of enquires, reduced customer complaint rates can assist in keeping track of your business from a marketing point of view. It is always good to monitor what your competitors are doing and how they are trending in the market. The introduction of new products in your business can keep you one step ahead of your competitors, so it’s always important to monitor your business surroundings.
As a business owner, assessing your own happiness is important when measuring your business success. Make sure you are happy with your progress to ensure all-round success.
If you would like to discuss your business performance or ways to monitor your business success, please contact your PJT Advisor on 5413 9300.