Back to top

How to Measure Business Performance & Growth

TNT Business Guide

It’s safe to say that pretty much every business will want to grow over time and become more and more successful, but in order to realise just how much success you’ve achieved this is something you need to measure. It’s easy to get complacent with aspects like this – especially if you’re currently going through a period where things are going well. The truth is though that you’ll never get a full understanding without measuring your business growth properly.

So how can you go about doing this? There are in fact a number of steps to take in order to give your company the clarity it needs in this area. To give you a helping hand, TNT have detailed what to do in this useful guide post.  

Create a Starting Point

You can’t measure anything unless you have something to start with; the simple thing to do here is wait until the end of the month and start afresh. Then, set yourself some goals or targets you may wish to work towards in the coming year, be it profit margins, cutbacks or simply productivity. You then have the first date to begin recording and monitoring your business, to then report back on.

Monitor Several Aspects

Along with your goals, you should keep track of several different aspects, these include:

  • Your profitability and how much money in general you are making
  • What your client base is like, how many come and go and who you retain over the year
  • How your customers feel about your business
  • How your employees feel about your business
  • How you personally feel about the business (these last three help give a more rounded picture of your growth)

Report Monthly

The first set of reports you produce should be monthly, as these essentially give you your first impressions of how your business is progressing. Delegate staff to record the financial and client number aspects of your business in their respective departments and keep this in centralised Excel sheets that everyone can view and add to.

Check Quarterly

The next checks you need to do should be quarterly. When three months have passed you should be able to start seeing trends and patterns in different areas of business growth. What you should do here is take a note of best practices from strong performers to help support other weaker areas during the next quarter.

Check Annually

Finally, when a year has passed by, it’s time to start fully interpreting your data and getting a detailed view of how much growth your business has experienced. The full year will probably fluctuate up and down (so make sure you plan for busier periods), but using your spreadsheets of information you can create graphs and charts to see what trends there are. This is particularly effective for profits and also client numbers.

Remember to also take on board the feedback from staff – particularly if you’ve underperformed or seen negative growth. Again, this is to get the full picture about what happened at certain times and whether any external factors such as unhappy clients, or staff numbers changing affected your growth.

Check the Competition

Another good way to measure your growth is to compare it to your competitors. You may well have to do some digging to source this information, but some accounts are available to the public. Even if it is basic numbers and figures, this could still show how well you are doing comparatively across the year.

Refine any Problematic Areas

If there are any problem areas then, with these measures, you can identify them quicker and start altering your business plans now to try and improve them. There’s no harm in seeking external advice to support you with these improvements either and if anything this could speed up your processes for resolving any operational issues.