Many CEOs and company owners will make appointments to see their doctor fairly consistently. So, why wouldn’t you do just that when it comes to the health of your business? Just like we won’t hesitate to get an annual checkup or take our vehicle in for an oil change, it is imperative to give your company “a checkup” of its own, and take inventory of how your business is actually performing. This needs to be conducted regularly, no matter whether or not you could be selling your business next year or in ten years. Because we all know that if you want to be successful in matters of all things business, you must know how to measure it. Read on for a few tips on how to take stock of how your business is performing.
Check those financial statements
When taking inventory of business success, the first item to consider is an obvious one: both profit and cash flow. How much cash is your company making, and what are you spending to keep things running smoothly? Take a look at everything from at least the past year or two, including financial statements, balance sheets, and cash flow statements.
Take a look at customer satisfaction
Take stock of your customer base to make sure that clients are regularly content. Are customers coming back more than once? Are you receiving client referrals? What about those Google review ratings and personal testimonials? These are all things you’ll want to consider when measuring the success of your business.
Be consistent about performance reviews
Your clients are happy, and that’s wonderful — but are your employees smiling? The people who run your business are crucial because without them, you would be running everything yourself… and no one has time for that! By conducting employee reviews on a regular basis, you will be better equipped to compile valuable feedback and also likely increase workplace productivity.
Consider getting a business valuation
Life can be very unpredictable, and the same goes for your company. Be it problems with business partners or marital strife, many things can swiftly affect the the success of your business, which is why tracking its worth is always a good idea. A professionally conducted business valuation will showcase your company’s true value, and you will be better able to handle any potential challenges that arise. And you will have the proper data to help you make any necessary improvements that will help boost your business’ value — for whenever the time comes to sell your business!
Gauge business growth
So, you may already know that you’re making a solid profit and your clients are happy, but are profits increasing year after year? Are you regularly pulling in new customers? If you answered, “No,” to each of those questions, some changes may need to be made. Keeping a customer database of email addresses is one way to track incoming clients, and upping your marketing strategy and/or adding a bigger variety of inventory or services can also aide in company growth.
The business experts are here to help — contact The Tampa Bay Business Broker now to learn more and get a free and confidential business valuation.