Did you know only 25% of new businesses succeed 15 years? Measuring success is a difficult thing to do, mostly because there are so many different ways to view success. Each business likely has a different definition of success and set of goals.
It’s important to establish your metrics for success, though, because a large percentage of small businesses fail early on. Having a clear idea of the performance indicators of your success might help you steer the ship.
We’re looking at a few different ways of measuring success today, giving you some food for thought. We hope these ideas are helpful as you move forward with your business.
Let’s get started.
Monthly Recurring Revenue
Revenue is calculated by multiplying the number of units sold by the cost of each unit. In other words, it’s the amount of money your business brings in before you account for all of the expenses.
Profit is the figure you get after accounting for expenses. Revenue is an important thing to measure, though, because it’s your baseline. The more revenue you can generate, the better you can feed your business to grow.
Profit isn’t always the most important thing early on, as you might need to put most of your revenue into different aspects of your business. Set a clear idea of your goals for revenue for the first three years, accounting for how you’ll adjust spending as you grow.
It’s also essential to find ways of quantifying employee satisfaction. The happier your employees are, the more productive they’ll be. Further, a happy staff indicates that you’re doing something right with your business culture.
Customers respond to businesses that treat their employees well, too. Word spreads, especially in a world where so many employees are mistreated and undervalued.
Naturally, you need money to keep running your business, but employee satisfaction should be a close second in importance.
Online Performance Indicators
All businesses need to think about their online presence. Success online directly equates to success in your store. The beautiful thing about digital presence is that there are numerous ways to measure your success.
There are a lot of concrete performance indicators. Search engine optimization is a big piece of that puzzle. Things like online traffic metrics, backlinks, content creation, and more are all of the utmost importance.
Start asking questions like “How many backlinks do I need to improve rankings?”, and “Who is my target audience and where do they exist online?”
Get familiar with your digital presence, your metrics for success, and the work needed to improve. There’s a lot to learn about digital marketing, but it’s worth the effort.
Need Help Measuring Success?
We hope our look at measuring success was useful for your business. There’s a lot more to learn, though. We’re here to help.
Sometimes you just need a few crash courses in different business ideas, especially when it comes to online success. Explore our site for more ideas on digital marketing, improving your website, and figuring out how to navigate the digital world effectively.
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