We are Newcastle Accountants and We Run a Successful Business. Here’s How we Know a Business is Performing Well.
Only we get to decide what success looks like to us - it looks different to everyone. But achieving what we set out to do is key.
We are Newcastle Accountants and if we ever tell you that you have an awesome business, you can rest assured we mean it. We don’t joke about with language like that when it comes to businesses and we know what we’re looking at.
When someone is saying that their business is doing well, it may be a bit of “how’s the weather” chat - but if you want to know how you’re actually performing overall - here’s how we actually verify if a business is performing well.
Obviously- financial metrics are crucial.
We start by analysing the P&L, revenue, expenses and net profit - and they need to be considered over a specific time frame.
Your balance sheet will also show your businesses financial position and it’s ability to meet any of it’s obligations.
Cashflow is also something that would need to be taken into consideration. It’s no small task when determining the financial position of a business, and a wholistic view is necessary to be really honest about it. It takes a lot of time and the critical eye of someone who knows what they’re looking for.
Some important performance indicators we would look at.
We’d ask a number of questions here -
Are your sales increasing?
How is your lead generation?
How are your customer acquisition and retention rates travelling?
Is your gross margin in the green?
Do you still have a life outside of your business?
AND THIS NEXT ONE IS IMPORTANT -
Are you still having fun?
Sure the money is crucial, but if you went into business for the freedom or flexibility, without achieving those goals, you haven’t been successful really, have you?
Only you get to determine what “success” means - so keeping your goals front of mind is key.
Client Satisfaction.
Your client satisfaction is crucial. We’d look at your repeat business and recurring work as a sign of client satisfaction.
Reviews, direct feedback, surveys and client retention are a great indicator of business performance & reputation.
Are your employees happy?
Your employee retention is a good starting barometer for how your team is feeling. Does your team buy into your business values and goals?
A happy workforce is a productive one and without this working well it is going to be tricky to hit your targets.
If your team is underperforming it will affect how we would assess your business ( Boldside Consulting have a range of workshops including a culture reset that can put you back on track ).
Strategic planning & adaptability.
A red hot business aligns business activities with long-term goals and can adapt to changing trends and technology. A healthy and thriving business needs to be able to stay competitive.
