Academy

THISDAY Style - - COVER -

PART ONE

out of your busi­ness? The three main fi­nan­cial state­ments you can use at your small busi­ness are the in­come state­ment, bal­ance sheet, and cash flow state­ment. The in­come state­ment mea­sures the prof­itabil­ity of your busi­ness dur­ing a cer­tain time pe­riod by show­ing your busi­ness’s prof­its and losses. The bal­ance sheet shows your busi­ness’s fi­nan­cial health, mea­sur­ing how much you owe and own. And, the cash flow state­ment shows how liq­uid cash is at your busi­ness. Mea­sur­ing busi­ness per­for­mance means check­ing out the money flow of your busi­ness. If you want to see how prof­itable your busi­ness is, check out the fi­nan­cial state­ments. 2. Check Cus­tomer Sat­is­fac­tion One im­por­tant mea­sure­ment of small busi­ness suc­cess is cus­tomer sat­is­fac­tion. If your cus­tomers aren’t sat­is­fied after buy­ing from your busi­ness, they prob­a­bly won’t do it again. How do you mea­sure cus­tomer sat­is­fac­tion? There are a few dif­fer­ent ways, in­clud­ing through sur­veys, re­views, or even ask­ing, “Did you find ev­ery­thing you were look­ing for?” Take pride in ex­cel­lent cus­tomer sat­is­fac­tion. Look out for re­views and make sure your cus­tomers are happy with your prod­ucts or ser­vices. When you re­ceive re­views, post them on your com­pany web­site. That way, oth­ers know what real peo­ple have to say about your prod­ucts or ser­vices. Cus­tomers help us im­prove our prod­ucts. Cus­tomers know what they need, and you learn how to sat­isfy their needs by lis­ten­ing to them. Many of the fea­tures you may add to your prod­ucts or ser­vices should be driven cus­tomer re­quests. 3. Av­er­age How Many New Cus­tomers You Get Know­ing how many new cus­tomers you get is a great way to mea­sure your busi­ness’s suc­cess and pre­dict growth. If your busi­ness is stag­nant with the same 25 cus­tomers, you might need to kick up your mar­ket­ing strat­egy. See if the peo­ple buy­ing from your busi­ness are ex­ist­ing cus­tomers. De­velop a client list with email ad­dresses to track cus­tomers. That way, you can eas­ily count the num­ber of new cus­tomers per month or year. Av­er­age how many cus­tomers you get from each new busi­ness ac­tion, like adding prod­ucts or up­ping your mar­ket­ing ef­forts. By av­er­ag­ing your new cus­tomers every so of­ten, you can mea­sure how suc­cess­ful your busi­ness is at draw­ing in new peo­ple. ...to be con­tin­ued next week. Culled www.forbes.com and adapted Do you know any en­tre­pre­neur be­tween the ages of 18 and 40 with an in­spir­ing Busi­ness Story?

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