How to know if your business is on the right track

You may already have a financial plan, work with good suppliers, have a good team of collaborators and manage your tasks productively.

The question is: How do you know if all this effort is giving good results? Here are three important questions you should ask yourself regularly to make sure your business is on the right track.

1. Are your goals being achieved?

There is no use completing all your projects and keeping your to-do list always up to date if that is not helping your company succeed, right?

Always set aside some time to rethink your goals and review your progress.. What projects were completed and their scope was not quite good? Which ones generated results above expectations? Is it necessary to change something in the action plan?

Although you already had different scenarios in mind when setting your goals, it is important to pay special attention to the current situation of your business and, if necessary, “recalculate”.

In case you change any of your goals along the way, make sure your entire team is aware of and understands why this decision was made. Thus, they will also be able to modify their own action plans to help the company’s objectives.

2. Is your company generating profits?

The same analysis must be applied to your financial planning, which in theory you did when you started your business. Consult the bank movements of your company, verify what your last purchases and investments were and collect all the possible records of capital inflows and outflows.

From this information, it will be possible to calculate your profit margin, that is, the amount that results after subtracting all the expenses during a certain period of time.

In case the result is positive, determine the average monthly profit and compare it with the goals that you initially set for yourself. In case it is negative and you are losing capital, ask yourself what measures you have to take so that your company can overcome the deficit.

This analysis needs to be done accurately and realistically.. It is not useful to work with assumptions or approximate numbers, but with concrete data. Is the budget being respected? Identify what factors contributed to the current situation, choose what expenses can be avoided in the future and, if necessary, update your financial plan.

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3. Are your customers satisfied?

If you have already reflected on the two previous points and, happily, concluded that your company is constantly growing, increasing its profit margin and well on the way to the future, the last question remains, but no less important: what was the level of satisfaction of your public?

Knowing the expectations and opinions of your customers is essential to guarantee success. Is the differential that you had chosen for your business really being perceived? Is the product fulfilling the function that was promised to the customer?

An interesting satisfaction metric is the Net Promoter Score (NPS), which refers to the degree, between one and ten, to which a consumer would recommend your brand to someone. You can identify the factors that influenced each evaluation and, based on the average of the obtained numbers, know if the service is satisfying your public – after all, we all recommend only the things that we really like. No?

Another good resource is the Loyalty Rate of the Clientnamely, the percentage of buyers who return to use your service or product in relation to total customers. Once again, the ideal is to try to understand what it was that generated loyalty. For example, it is very useful to have access to very valuable knowledge that will allow you to make the necessary adjustments.

Do not forget to also consider if people value the way you communicate with them and the technical service you provide. using special metrics for that area.

If you want to delve even deeper into customer service, listen to the advice of an ecommerce expert on how this area influences your business.

conclusion

With constant monitoring of these three points within your venture you will be able to take all the necessary actions to guarantee the growth of your company, keep your team aligned behind the same objective and make decisions with greater certainty.

If you are betting on electronic commerce, it is also important to choose a complete and reliable platform, such as the one offered by Tiendanube. It’s easy, fast and super safe.