Starting a business and growing it is not an easy endeavor. Most new companies in the UK and US fail within a couple of years. Many business owners are not able to gauge the actual progress of their business for an extended period. In some cases, business owners cannot decide whether they are doing well or not. The work and tasks around you are so engaging that you do not have the time to look at some of the key performance indicators.
There are however a few simple signs to distinctly indicate that your business is doing well.
Here are the signs that your business is doing well.
1. You are working on your vision:
If you turn up to work every day without a proper roadmap, it distinctly indicates that your business is not on track. On the contrary, if you are working according to the business vision which you have, you are on your path to success. Once you start executing the plan, sooner than later your business will begin to do well. Chances are if you’re already halfway through implementing your vision, your business is doing well.
2. You are gaining positive customer feedback:
Positive customer feedback is the number one indicator that you are doing well in business. It is not easy for anyone to satisfy the requirements of the clients. If you gain positive feedback and repeat business, it explicitly indicates that you are doing something right.
3. You’re making progress every quarter:
Many business owners merely take into account annual progress. However, if you want to find out whether your business is doing well or not, it is advisable to look at your business performance of the last 90 days. The quarterly performance of your business will act as a barometer to measure its success. You have to consider the macroeconomic features while deciphering your business performance. Also, the general state of the economy matters a lot. The best way to monitor the state of the economy is to watch the stock markets. When you stay abreast with the dow today and the top 30 stocks every week, it is easy to understand the state of the economy. You need to compare the progress of your business relative to these indicators. If you can outperform these indicators or perform in-line with these indicators, your business is indeed on the right track.
4. You have stuck to a simple business model:
In most industries, a simple business model works great. If you have modified it significantly and made it complicated, eventually your business will run into hindrances. Companies with simple business models work great. You have to be clear about your vision and the business model. If it is easy for you to understand, you are on the right track. In the world of business, complicating things is never a good idea. You have to analyze your current business model, and if it is simple enough, you are on the right track.
5. You are cash flow-positive:
The best indicator of a successful business is a positive flow of cash. If you can maintain it quarter to quarter, it undoubtedly indicates that your business is thriving. You have to work towards increasing cash flow on a quarter to quarter basis. A cash flow-positive business will allow you to invest back into the company which will fuel exponential growth. Positive cash flow is one of the leading indicators of a successful business.
6. You are focusing on productivity:
Along with the above indicators, if you’re bettering your business productivity, it indicates that you are doing well. The results of better productivity are not instantaneous. However, in a couple of quarters, they are noticeable. If your focus on productivity is consistent, it indicates that you are doing well.
7. You are learning consistently:
In the world of business, you need to improve on a day-to-day basis. You can do so by learning new lessons from your daily interactions with your customers and employees. These improvements will help you to serve your customers better. When you’re on a constant endeavor to better your product and service, it automatically helps you to outwit your competition. In the longer term, this can be a force multiplier for your business.