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What are benchmarks of success in business?
Success in business comes with its own baggage of challenges, risks and downfalls. However, careful research and proper understanding of certain financial concepts will lead to growth of revenue and channelize its progress.
Benchmark of Successful Business
- A very basic indication of success in business is a gradual rise in ‘net worth’ as it gives a clear cut picture of profitability in which the amount for assets is more than that of liabilities. Thus an ‘indicator of worthiness’ of an organization.
- ‘Cash profits’ also function in favour of business earnings that need to keep close tabs on, as it works with respect to the profit or increase in revenue and the loss or increase in expenses.
- In today’s smart, competition-driven and uncertain business scenarios, your business needs a better calculation strategy with respect to securing profit and not just finding out the expenses that the business process will incur which is achieved by the ‘profit first concept’.
- ‘Earning per hour of employee’, as rightly read, does make a difference in working out on the cost that the business incurs. ‘Productivity’ and ‘remote employment’ can be factors that will help to maintain a profitable hourly payroll for your each workforce member. Determining the ‘earning per hour of you as an owner’ takes into account factors such annual salary and the personal savings; minus the annual, estimated personal expenses, which on hourly division will give the minimum earning calculation, without fiddling with the business savings or profit.
- ‘Involvement’ is essential, but to an extend wherein you need to only set the goals for your staff and business assistants (individual or software) and maximum utilization of modern, online and virtual resources. This will ensure an increase in personal disposable time for you as an entrepreneur as it loosens the strategy of performing tight business schedules from the owner’s end. Also, shifts your attention towards expansion of your business for recognition on a national and global front; by forming alliance, opening franchises, licensing your products and other marketing exposures like school and colleges; also securing a government contract as a safe play, which leads to dynamic nature of business.
6. Your business needs investment in shares and earnings per every $ invested is crucial for success; giving account of the ‘rate of return’ you have incurred on an investment, with ‘earnings per share’ and ‘market price’ ,for those shares, being the key determinants.