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3 Ways to Know if Your Business is Headed in the Right Direction

The right business direction is a critical thing to understand for anyone running a business.

Business owners are often so caught up in the day-to-day of running a business that it can be hard to really answer the question “is my business headed in the right direction?”

That being said, there are some questions which I think will almost always tell you if you are headed in the right direction.

1) Does our net profit meet industry benchmarks?

If you are making the right amount of money for a business of your size in your industry, that is a good first indicator for your business.

Each industry is different. It is useless to look up the average profit of any given business and compare yourself to it, you need to be more specific. You need to compare yourself to businesses as similar to yours as you can.

That means if you are an IT services firm, compare yourself to similarly-sized IT services firms.

2) Are we retaining key staff?

Staff retention rate tells you a lot about a business, and high staff retention is associated with better cultures and higher profit margins.

Your culture in business is critical to your success, and your business culture heading the wrong way can often be the first sign of things starting to go in the wrong direction overall in your business.

If your culture improves then eventually so will your profit, as key staff remain and are motivated. The opposite is also true.

3)Am I enjoying this?

It’s a simple question but one of the most important questions a business owner can ask themselves. If you aren’t enjoying running your business, there are probably underlying – but usually fixable – problems in the business that need addressing.

If you know anyone whose business might not be headed in the right direction based on those three factors, please let them know about us as we currently have capacity for new clients.

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