There may be no clear standards in how to gauge business success, but there are simple ways to track tangible measure of progress within a business. The following are my 5 ways of measuring the success of micro business.
It’s not easy to come up with criteria to define business success. We all know too well that success is fairly dependent on the level of happiness the owner feels regarding the performance of his business, and happiness does not necessarily mean huge income. Therefore I carefully outlined the criteria so as to include contentment as well as the financial performance of a business.
Continuous lead generation
Some business owners gauge their success not simply by the amount of volume of people patronizing their business but by the number of new leads they are about to generate every single day. By keeping your vision to generating more leads no matter how many are already patronizing your business, you will keep your focus on the continuing improvement of the quality of the services you offer.
Conversion rate of leads to customers
The very reason why we make extended efforts of generating leads is for us to ensure that a continuous stream of customers will be realized. It takes a very good management and marketing approach to achieve a high conversion rate from a mere prospect into a loyal customer. By measuring your conversion rate, you should be able to understand the trend and will aid you in crafting and improving your methods for the benefit of your business.
The next gauge for success is productivity. It talks not on how many tasks you were able to perform but it is more on the number of tasks done that really matter. In business you do not necessarily have to do everything to succeed. You only have to define the things that are important or are instrumental to your core values and then perform those tasks with utmost quality. Identify the 20% of the most important to you and then focus your energy and resources on those 20% and then slash out the rest.
Health cash flow
A healthy cash flow is a determinant of a healthy business, and a healthy business is an image of success. Your business is basically ran by cash, so you need to pay a detailed attention to your cash flow and make sure it is in its right order otherwise your business is headed to its demise. So to avoid complications, prioritize your cash flow
Return on time invested
Best of all, for a business to be truly successful, you should be able to tell that you are getting more from it than your original investment. For having a business, you should also have time to reward yourself and the people you love with the blessings that you got from running the business successfully. I believe these sums up the entire measurement of running a successful micro business.
Improvise and never cease searching what works for you and your business, in the long run you might just find out the true measure of success.