It goes without saying that being an entrepreneur is hard. Besides the long hours and the multiple hats you wear, there’s also a lot of uncertainty. There are benefits, of course. Otherwise, nobody would be an entrepreneur, but sometimes it can feel like you’re working overtime just to keep your head above water. It’s hard to measure your success as an entrepreneur, especially if you compare it to other, bigger companies or people on social media. But there are ways to do it that you may not have thought of. Let’s break down how to measure business success as an entrepreneur.
Start with the money
One of the simplest ways to measure your business success is by looking at the hard numbers. Your financial statements aren’t the only way to measure business success, but they’re probably the most important because a business can’t survive if it’s not making a profit. The three primary documents you want to look at are your income statement, balance sheet, and cash flow statement. The income statement is how profitable your business is during a period by showing you your profits and losses. The balance sheet shows you how much money you owe and own. The cash flow statement shows you how much liquid cash is at your business.
Another way you can measure business success is how satisfied your customers are. How you collect this feedback may vary, but looking at online reviews is a good start. People rarely sit down to talk about a positive experience unless it was particularly affecting, so if you are getting good reviews online, that means you’re doing something right! Another measurement you can use is how much growth in new customers you have. Word of mouth is still the most effective marketing tool, so if you’re consistently gaining new customers, you’re on the right track.
The thing that brings profits is customer satisfaction, and the thing that brings customer satisfaction is stellar employees. If you manage to build a team of hard-working employees who believe in your business ideas and leadership, that’s another way to measure your success. Employee satisfaction is key to a business’s success, and maintaining that satisfaction is hard work.