Many managers and owners spend a huge part of their lives involved in their business. But at the end of the day, how do you measure success? There is no one-size-fits-all answer, but here are some metrics to think about.
Profit
The primary goal for a business is to make money. A business will go under if it’s unprofitable for long enough.
However, increasing short-term profits at the expense of the long term might not be smart. For example, cutting necessary capital expenditures like new equipment might increase profit. Or loading up on debt might seem attractive. In the long run, both decisions could have a negative impact.
Worth
A similar number you can look at is the balance sheet, which is assets minus liabilities. By focusing on increasing your company’s worth, you might avoid debt. Debt has tanked many businesses in the past.
Customer Base
Do you have customers from the very beginning? Do customers tend to stick around, or is there high turnover? Do you have high customer satisfaction ratings? Do your customers recommend you to their friends? With the internet, apps, and customer loyalty programs, this is easy to track…
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Jason Kumpf 