When it comes to running a business the main goal is of course to be successful. Whether you are CEO at someone else’s or an entrepreneur running your own company, then achieving success is the number one goal you will have. While that can be straightforward, what may surprise you is that accurately measuring that success is not as simple as you might expect.
Of course, the obvious measure that many stop at is profit. There is nothing wrong with that as it is important – not only to stay in business but also to pay staff wages and your own bills. The money your business makes is an effective metric of success as it shows that the services or goods you provide are well-priced, needed and delivered with great customer service.
However, profit is not the only way to measure business success. As more people move away from looking at things in a purely materialistic sense, then other ways to go about it become clear.
Refreshing ways to measure your businesses impact
To look at your company in a more holistic and unique way, why not consider the below in addition to the bottom line?
- Quality products or service – you might not make lots of profit but if you go out of your way to provide the best service or products then that could be seen as a success. Modern business is as much about solving problems for people or providing great value for money as it is selling them things. Looking at your business in this way will not only help you to feel better about it but will ensure your customers are also happy.
- Loyal customer base – another metric you could use to size up your business is how many loyal customers you have. If you have a strong foundation of customers who regularly return to you over a long period, then this counts as success also. It demonstrates that you have been successful in engaging with the public and providing goods or services that they value. It also shows that your customer service is working and that people like the way you interact with them.
- Brand awareness – this measure of success is about how many people know of your brand. This does not mean they have used your services but just that they know you exist. Building up a strong brand is important in today’s business world with so much competition in all sectors. If you find that you have a good level of brand awareness, then this is another way in which your business and marketing strategies have been a success. It also places you well for any further expansion plans or marketing campaigns in the future.
- Social initiatives – as we have already noted, modern business is no longer just about how much money you can make. A new wave of business leaders and switched-on consumers now measure business success by how much you give back to charities or local communities as well. If you are a business that helps others and behaves in an ethical manner, then that can be considered a success. Infor CEO Charles Phillips shows what a modern enterprise leader can do in this regard with his eye on charitable work along with the financial side of running the business.
- Happy workers – if you have a loyal roster of happy staff that is also the sign of a successful business. After all, if you were not successful then no-one would stay with you for long! That is why high rates of staff turnover should be investigated thoroughly. If you find that the staff you employ enjoy their roles and coming to work, that is a positive sign.
- Amount of time in business – it is pretty clear that a business that has been operating for a long time should be seen as a success. While it may not generate the most money or be a large multi-national, the fact it has stayed trading for many years shows it has worked. If you are able to establish an organization that does that then it is certainly a valid measure of success.
As the above points illustrate, if you forget about the money for a moment then there are lots of other ways to assess if your business is doing well.
Measuring success for the modern business world
Many business people are beginning to look at the world in a different way than previously. From mindfulness to finding alternative paths to happiness and contentment; it is not just about how much cash you have in your bank account. This has crossed over into the business world where companies are defining their success in various ways. If you want to move beyond the mere pursuit of money and look at additional ways to measure your success, then the above advice should help.