As a business owner, I have discovered that running a business is unpredictable, and everything is bound to change. We have experienced many changes this year, and to measure your business performance, there are certain factors to consider. Being an entrepreneur is a journey; you will experience successes like increased customer base and profit margin. You might also experience failure such as loss, business crisis or national crisis. It is that time of the year to evaluate your business performance.
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Here are four major factors that determine your business success or failure.
#1 Market and industry
Rememeber that you have several competitors. If you are a network marketer, there are over 500 MLM in the world today. Trends and updates from the network marketing industry can be an indicator to your growth. For example, when the global pandemic began in 2020, many businesses experienced loss. Fortunately, many businesses created a better business model to work despite the global pandemic. If you are still facing loss as a result of the global pandemic that started last year, it could mean that you are yet to evolve.
#2 Financial statements.
Another way to evaluate your business is how much money you have. How many money did you make this year? How many percent difference between year 2021 and 2020 income? How much debts did you accumulate this year? Is your income corresponding with your marketing efforts? The three main financial statements you can use for your business evaluation include cash flow, balance sheet and income statement.
The cash flow statement shows how liquid cash is at your business. The balance sheet shows how much you own and owe. While the income statement measures the profitability of your business during a specific period. It shows your business losses and profits.
#3 Customer satisfaction
It is not enough that you have created great products or services to solve your customer’s needs. The real deal is their satisfaction. Are they satisfied with your products? How satisfied are they? Are you their favorite or last option? How often your customer patronizes your product reflects how satisfied they are. Customers review helps us improve our products if you want to improve your business in 2022, leverage customer satisfaction and ensure that your customers are happy.
#4 Brand Visibility
How does your customer feel toward your brand and services? One way to rate your success in your industry is your brand visibility. Brand visibility is how much your customers and target audience recognize a brand. For example, I base my brand visibility on my engagement and how many referrals I get. Take a survey, ask your customers questions, check your statistics, and determine how much influence you have in your industry. After then, you should find out how to increase your brand visibility.
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