Are you a startup or an existing company? Are you still unsure of how to measure your business growth? Want to know where your business stands in terms of success?
Measuring your business growth has more to it than doing a few financial calculations. Yes, these calculations are important, but to ensure that your business is able to reach these prospective calculations, you must build a strong foundation for your business to grow from. The wise man built his house upon a rock, right? So what is stopping you from following the wise man and doing the same for your business?
Here’s 4 useful steps you could take to start measuring the growth of your business and establishing a firm foundation for your business to meet its prospective success target.
1. Setting SMART Growth Goals
Goal setting is such an important aspect of any business as it gives you a target to strive towards. However, when setting out your business goals, you have to ensure that they are realistic goals that are achievable. You don’t want to be setting up your business for failure because your goals were too big! Yes, it’s great to aim high, but ensuring that your business goals align with the SMART goals framework, you are already taking those first steps to ensure your goals can be met. When goal setting, try and think of goals that are either short term or long term that are specific, measurable, achievable, realistic and time-bound.
2. Create a Business Plan
Creating a business plan is the next big step in measuring your business growth as it will allow you to recognise important and specific aspects of your business. Who will you be targeting your brand/product towards? Will you be a sole proprietor or are you wanting to create a partnership with another business? What are the goals that you want to achieve regarding the first year of profits? What KPI’s do you want to achieve and how soon do you want to achieve them?
These are all important questions to consider and implement into your business plan. When developing your business plan, create specific objectives that you need to follow in order to reach those short and long term goals. Your business plan will become a vital aspect in being able to measure your success as you will be able to distinguish whether you have achieved any of your objectives. For early stage businesses, we recommend using a Business Model Canvas to map out your plans and to regularly revisit, adapt and change the plan as you learn more about your customers, market and opportunities.
3. Get Assistance from an External Source
Having someone (who is external to your business) look over your business goals and business plan will allow you to gain a second opinion and another fresh perspective on the goals and plans that you have established for your business. It is extremely important to gain that second opinion and external evaluation to ensure you haven’t missed anything and that all spectrums of the business are covered and setup correctly. Going to a business accountant, a business growth consultant or just having a chat with someone who already has an established successful business, can give you the guidance you need to steer your business in the right direction.
4. Benchmark Against Competitors
Understanding and measuring the growth of your own business is extremely important, however, it is also useful to take into consideration how other businesses in your prospective market are going on that business success scale. Are they targeting towards a particular group of people that is increasing their sales profits? Are the marketing strategies that they are using, bringing new customers into their business? Have they partnered with other businesses or products to expand their outreach? These are all important aspects to consider when comparing your business against other businesses in the same market. These comparisons may also help you realise what is working for your business and what isn’t and what changes need to be made to your business plan or goals.
We know that measuring the growth and success of your business is easier said than done, which is why we are here to help!
If you’re a bit stuck on what to do next, or if the goals you have set for your business just aren’t giving you the results that you want, then the Gold Coast Innovation Hub can help to guide you in the right direction. At the GC Hub we offer regular mentoring sessions (free to members) with our member growth managers. In these sessions, our consultants/mentors will be able to help you with questions about your business and help to shift your business towards a more successful outcome. If you believe that the Gold Coast Innovation Hub may be able to help you or you would like to become a part of our community, please register your interest at email@example.com