What makes YOUR Business Successful? | IAT SmartDial® Solutions

What makes YOUR Business Successful?

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I recently read a blog that started with a question similar to this, “What is the most important expense to track in order to help my business be successful?”  As I thought about this, I found that in order to answer the question for myself I needed to start by asking another key question. “How do I personally define business success?”  On the surface, this question seems simple. But I’ve learned through years of experience that it is actually one of the more difficult questions for a business owner to answer.

For example:

  • Is success defined by profit?  You know the “money” left over after all business expenses have been captured.   Is it the actual dollar figure you see on the bottom line? Or is it the percent of profit compared to revenue that defines success for you?
  • Is success defined by market share?  If so, then what percentage of market share makes your organization a success? 10%, 20%, 50%, 75%?
  • Is success defined by revenue growth?  Are your overall revenues growing year-over-year?  Are you satisfied with a $100 increase in yearly revenues or do you need to see a $1million increase in revenues to be successful?
  • Is success defined by longevity?  If your business survives the 1st year of operations does this fulfill your longevity definition?  Is it 5 years or longer?
  • Is success defined by customer satisfaction or loyalty? If a customer makes one purchase a year from you does that magically place them in the loyal customer category?  In your business what characteristics or behaviors does a satisfied customer exhibit?

The list of questions that can factor into your definition of success is actually much more comprehensive than what I’ve stated above. But I hope my list will get you thinking and help you to form your own definition of a successful business.

So, back to the original question, “What is the most important expense to track in order to help my business be successful?”  Frankly, the answer is it depends. It depends on how you personally define success.   It depends on your company goals and what you are attempting to accomplish with your company.  Once you are able to succinctly define success for your business, then you can begin to track expenses, revenues and other business metrics that will help you achieve success.

I’ll leave you with two things to remember as you continue working toward your business goals. First, I personally believe that if you are not having fun along your path to business success then you’ve missed the proverbial boat.  Second, recognize that your definition of success will need to be adjusted as you progress.  Once you’ve reached one level of success then it is time to define another level of success and start the journey again.

Have fun and enjoy your journey to success!

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This article was written by Dave R