When you talk about business growth, it’s a hard term to define without expressing it in concrete numbers. But before you can express growth in concrete numbers, you have to be measuring something, so you’ll be able to determine whether or not you’re growing. Most businessmen generally keep track of key performance indicators such as the number of new customers in a certain time frame, or the number of leads generated during that time.
Here are six tips for measuring business growth for your company.
A big part of business growth stems from determining how much demand there is for your products or services, and if there’s low customer demand for your products, chances are your business will not be growing. On the other hand, when there’s a high demand for your goods and services, you have the potential to enjoy some significant growth.
Profit and loss
Obviously your business will have to enjoy more profits than losses in order to experience growth, because if you have more losses than profits, your company is probably destined for bankruptcy, rather than business growth.
One of the best indicators for business growth is incoming revenues, because even if profits are down, increasing revenues can still be a very good indicator for future business growth.
Even though it will cost money to hire more employees, an expanding workforce is generally a good indicator of a business which is on the uptick. The reason you need to hire more employees is usually because of increased customer demand, which is another good sign for your business.
Coupled with profits and revenues, sales are another great indicator of how well your business is doing. Sales are right at the forefront of your business, and whenever sales experiences prolonged increases, that’s a positive indicator for business growth.
Market share is often another powerful indicator of growth for your company, since it portrays how much of the available demand you actually have cornered by your business. If you can consistently keep a high share of the overall market, your business will probably enjoy continued business growth.
Growing your business with Purevue Capital
If your business requires funding before it can achieve the kind of growth you have in mind, we may be able to assist you. Contact us at Purevue Capital, so we can discuss some alternatives which may help to provide you with the capital you need.