How to track company growth
Simply put, tracking your business growth is about defining a projection for its future. And that starts with defining your business goals at every stage.
For example, you as an established middle-market business may want to simply define your goals as increasing revenue a few percent a year or generating some incremental profit versus the previous year.
It’s always best, though, to create a comprehensive list of operational factors to monitor – where harmony among them all, or dips and rises in one or two, will provide a detailed overview of your likelihood of business growth.
Here are some business metrics to take note of, for tracking growth:
- Increase in customers – this is the most essential for optimum growth. However, a deep dive into the data must always be made, for example: are there many customers coming, but more leaving? An increase in customers means nothing for growth if customer retention is low.
- Increase in sales – obviously more sales happening is a good indication that there’s interest in your product or service, and so growth will inevitably follow. However, do that deep dive again – it’s the quality and sustainability of the revenue that really matters.
- Increase in profits – this is a good indicator of consistent growth. However, there must still be an eye kept on whether you are investing for future growth that can have a big impact on your company’s sustainability.
The benefits of tracking company growth
So, let’s get to the ‘why?’. Why are growth rates in business so important to track?
It’s all about insight, so that you can make better business decisions:
Using bigger data, better, to track your growth, will ensure you can more accurately identify potential issues in your business – issues like why you’re not retaining customers, or why your margins are shrinking. With this insight, you can shuck and jive, and make the market work better for you.
Focus on the positive
If you’re seeing growth in your business, things are working. So, it goes without saying that you’ll want to focus on, specifically, what it is you’re doing right, so that you can keep doing more of it. Tracking growth will give you that insight.
The almighty dollar
Money in, money out – it’s a cycle that keeps a business in constant motion. But when it comes to the ‘money out’ side, tracking is so critical. Knowing what you’re spending on resources, marketing, or overhead, lets you duplicate the strategies that are working, and quash ones that aren’t. This is just good business, because it stops poor money management – a serious hindrance for growth.
Monitoring the value of your business helps you measure the health and sustainability of your business. If your value is going up your business is viewed as having continuing ability to growth and thrive. When the market value of a business declines there are indications that either there are risks that need to be mitigated or the strengths in your core capabilities may not be a strong as they need to be in the current market.
Define your goals, then track and grow your business so that it is healthy and sustainable
When it comes to a business journey, is yours one for growth? When taking on the tradition of having a detailed line of sight in every trackable metric for your business, remember that the first step is to define your goal, and then determine the appropriate metrics to measure.
Destined can help you envision your goals with our full suite of consulting services.
These are the steps we deploy, to help you to a better growth strategy:
- Vision session – envision your future, identify priorities and set timeframes
- Strategy roadmap – develop your roadmap and align your team to the growth you seek
- Journey tracking – never stray from the path to your business health and longevity
- Executive reward programs – retain key management that’ll keep your business healthy
- Guided projects – prioritize the strategic elements that will add lasting value
And as ever, your journey is our journey. We’ll be there every step of the way, to get you the growth that’ll ensure you not only survive but thrive.
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