Measuring Success in Business

Measuring Success in Business

Published: November 16, 2021

Methods for measuring success in business vary by business size, ownership type, industry, and other factors. Whereas large corporations have plenty of well-documented Forbes List role models to take notes from, small business success stories are unlikely to be featured in mainstream magazines or blogs. If you own a startup or small company, you’ll need to be resourceful in finding business success measures. Here’s how to see how far you’ve come.

How to Measure Success in Business

One of the best measures of success for businesses and their entrepreneurs is determining how much profit the company is making. However, there are several factors that drive profit, so it’s important to gauge how well your business is doing in other areas. Some ways to do this include:

  • Measuring customer satisfaction. When establishing criteria to measure the success of a customer-oriented business, managers should prioritize tracking customer satisfaction. Ask customers to complete surveys or leave reviews, or ask them if they’ve found what they were looking for.
  • Determining the number of new customers. Create a client list using transaction information; you can then track how many new customers are added each month.
  • Conducting employee performance reviews. It’s important to use these as a measuring tool, since motivated employees who make the most of their time will do better at helping you with profit-driving strategies.
  • Keeping your finger on the market pulse. Keep an eye on market trends and strength in order to anticipate challenges and opportunities for business success. 
  • Assessing your expectations and change them if necessary. Determine what your expectations are, whether they are realistic, and revise them as needed depending on the strength of the market and other variables.

Measuring Financial Success in Business

Of course, it’s also important to monitor your profit margin, which you can measure by analyzing your financial statements. The three main statements are the balance sheet, income statement, and cash flow statement. The balance sheet lists assets, liabilities, and shareholder equity. The income statement measures expenses against revenue, and the cash flow statement describes the net increase or decrease in cash over a period of time.

Get Help With Measuring Business Success Through a Business Accelerator Program

Enrolling in a business accelerator program is an excellent way to get guidance on measuring your company’s success. If you’re a growth-minded small business in the Northwest Chicagoland area, consider applying for admission to an accelerator program with Next Level Northwest.  

Next Level Northwest is a business acceleration public-private partnership serving the Northwest Chicagoland region. We support regional and local businesses through collaborative and innovative initiatives to help grow the economy. Download our Program Overview (PDF). This November, we will be honoring our program graduates with a special event, which is a great opportunity for entrepreneurs to increase visibility in their community.

Ready to take your business success to the next level and become a Next Level Northwest graduate? Download and prepare your application following this process today!