Brand Measurement
How do you measure your business success? Where does your company stand, and where would you like to improve? It’s often about more than financial gains. Consider these seven ways to chart your business success.
1. Gross sales
Most companies rely on a single number to assess success: gross revenue from sales of products or services. But this figure can be misleading, particularly if you have high overhead or other expenses that can distort this snapshot of overall business activities. Calculating your gross revenue over a specific time period is a good place to start, but don’t rely on it as your only yardstick.
2. Profits
Imagine two very different businesses. One business with low overhead and high profit margins. The other is a much larger business with higher sales volume but with an overhead and other expenses that eat up much of the profits. Both companies end up with the same net profit. Which is the more appealing business? I argue that it’s the lean and nimble firm, one that drives profits while steering clear of the complexities that so often drain the management of a larger enterprise. Remember, at the end of the day, it’s net profits — not gross dollars — that really matter. (more…)
