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How do you measure business success?

How do you measure business success?
Wednesday, May 16, 2018

Once you have been running your business for a while, it can be difficult to gauge how well you’re doing against your own goals and in comparison to other companies in your marketplace.

Here is Panthera’s guide on how to measure the success of various different aspects of your business.

Look at your financial statements

Assess your income and expenditure and see how they stack up against each other. If you are operating at a profit and your costs don’t seem to be running away with themselves, then it might be difficult to see anything that needs changing. But therein lies the danger – you should look a bit harder to see what’s really going on.

Create a cash flow forecast

A cashflow forecast predicts the amount of money that your business will have to hand at any point over a given period. The financial period in question can be anywhere from the next quarter to the next couple of years. The longer the period of time, the more difficult it will be to put together but it’s worth doing nonetheless.

To do this, take the financial data from the last couple of quarters and analyse them to discover any trends. If, over time, they show that your business is making lots of sales and collecting the cash fast enough to outpace your expenditure, you’ll have a surplus of cash that is likely to continue to rise.

Of just as much interest as what’s coming in will be what’s going out. A cashflow forecast gives you the opportunity to examine all of your expenditure items – the ideal opportunity for you to question whether you need to spend money with that supplier or not.

If business is all about getting the highest possible reward for the least amount of work, cutting back on unnecessary expenditure means that your breakeven point each month will come sooner and that, on the same level of sales you’re making now, a better return.

Check your customer satisfaction

This is more difficult to measure but your business should strive for the greatest number of positive comments and feedback as possible, whether direct to you or on an internet ratings site. If your customers are happy with the service that you have provided, encourage them to leave positive feedback where other potential customers might see them.

The same can be said in reverse. If you have an unhappy customer (don’t worry, this happens to the best of us), then make sure that you address their complaints directly. Doing so will allow you to salvage future sales from that customer by giving them the peace of mind knowing that their concerns have been properly dealt with.

Check your staff turnover rate

Constantly having to fire and rehire staff is expensive financially and demoralising for your staff.

If you find yourself repeatedly replacing members of staff, you will spend a lot of time, money, and effort on training up new employees only to lose them a little while later. Staff generally tend to underperform if they feel their positions are under threat – you might think it would motivate them to greater things but the evidence suggests otherwise.

According to Monster, the UK average employee turnover rate is 15%. It varies greatly between different sectors – E-days have kindly provided a breakdown by occupational group – click here and scroll down the page to see it.

To discover what your company’s staff turnover rate is over a year, add the number of employees you had at the start of the year to the number of staff at the end of the year and then divide the total by two. Then divide that figure into the number of employees who have left over the year. Then multiply that result by 100 to get your staff turnover percentage figure.

Compare your business to your competitors

This is best done in two stages. Start by looking at your business when you first started out. How did you stack up against your competitors? What advantages and disadvantages did your business have in comparison?

Then look at your business now. What has changed? Do you have a larger market share? Have they got a larger social media following?

Examining your competitors over a period of time will also give you a good idea of which areas you are successful in, how far you’ve come over that period of time, and those areas where you need to improve.

We can help

If you’d like help and advice on measuring the success of your business relative to your own goals, we’d love to talk with you. Call us today on 01235 768 561 or drop us an email to enquiries@pantheraaccounting.com – we’ll be back in touch with you shortly.

What our clients say

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey Kaleido Grafik Limited
Anita van Eijndhoven

Talk Our Language

The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

Anita van Eijndhoven Quidne-IT
Ash & Tim Lane

Panthera brush aside the stereotype of the typical accountant

We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker BKR Solutions
John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller Bigger, Brighter, Bolder BBB

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