Is Your Small Business Successful? 4 Signs You’re Doing Better than You Think
Owning a small business is tough, and somedays you might feel like giving up. But, your small business is probably more successful than you think. When you’re figuring out how successful your small business is, start by defining success. Your definition might be:
- reaching a certain number of loyal customers
- having a steady cash flow
- making enough money to support your family comfortably
After you’ve determined what success looks like, check out these four signs that your small business is doing better than you think.
1. Your small business earns money when you’re on vacation
If your small business can run successfully and still make some money while you’re on vacation, then you’re doing pretty good. And, if you haven’t taken time off in a while, do it now. It’s good for your health and will give you a chance to find out if your business can function without you.
2. New customers find you
Do you have new customers show up out of nowhere, and you have no idea how they found you? They just saw your store and wandered in or found your website while searching for something online. That’s a great sign!
3. Customers tell their friends about you
When your current customers start telling their friends and family to shop with you, you know you’re treating your customers right and giving them what they want.
To thank them, give something back – like a discount for each new referral. Rewarding customers for referring their friends is a great way to build customer loyalty. Learn more about how to build customer loyalty.
4. You can bounce back from a rough month
You might not see profits every month, but if you’re able to survive those rough months, you’re doing okay. During a lean month, figure out ways to save money or attract new customers.
If you have a rough month, use that time to figure out how to save money or find new ways to attract customers.
5 things to consider when measuring success
After you’ve realized that your small business is doing well, look at these five things to determine how successful you are.
1. Review your financial statements
Look at your small business’s financial statements to see how you stand.
- Your income statement will show you how profitable your business is.
- Your balance sheet will show how much you owe and how much you own.
- Your cash flow statement will show how much cash goes in and out of your company.
2. Check in with your customers
Talk to your customers to see if they’re satisfied. You might consider emailing regular surveys to find out how you’re doing. Or, you could ask them to review you on Google or Facebook. You can also ask customers how their experience was while they’re checking out.
3. Determine how many new customers you have
Loyal customers are great, but to keep growing your business, you need new customers, too. Regularly, figure out how many new customers you picked up last month.
If you’re getting quite a few new customers, then you’re doing something right. If you’re not getting too many, don’t worry! You might just have to change up your marketing strategy a little bit. Read also: 5 Tips for Attracting New Customers
4. Talk to your staff
Your business couldn’t run without the hard work and dedication of your employees. So, check-in with them to make sure they’re getting everything they need from your company.
Hold regular performance reviews – not just to tell your employees how they’re doing, but to find out how you’re doing, too. Ask them if they’re happy and if they see themselves with your small business for a long time.
5. Check in with yourself
Are you satisfied with your small business? Your happiness with your company means more than you might realize. If you’re unhappy, that will pass down to your employees and customers. As long as you’re happy with where you’re going, your passion will spread and help you continue to build a thriving, successful business.