Digital Tips

How to Tell if Your New Business Is on the Right Track

Every business seeks growth and progress. But what parameters do you use in assessing if your business is growing? And how do you go about making the best analysis of these metrics? To answer these questions and help you understand if your business is on the right track, the five key points listed below will help.

1. There’s an increase in profits.

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This is the most obvious metric to assess growth. Increased earnings translate to more customers. However, you’ll need to invest in the right equipment needed for growth for your business to earn more. For example, if you’re in the food catering business, new kitchen equipment might in your bucket list. Very likely, you’ll also require restaurant equipment financing like the one offered by The restaurant Warehouse.

They offer reliable and straightforward new equipment financing in collaboration with QuickSpark. You can replace old appliances and get your desired restaurant equipment (be it a refrigerator, air conditioner, freezer, thermostat, etc) with affordable monthly payment. This is offered irrespective of your credit score, your business’s age, or your experience in that field. This gives you room to quickly cash back on investments, increasing your earnings within the shortest possible time.

2. You are rapidly clearing bills.

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You can’t run a business without costs. However, the ability and speed to clear off those bills (be it transport, taxes, or utility) without using any external sources of income is what matters most. No doubt, certain costs are out of our control. For example, if your electricity bill is going up due to a tariff increase, there isn’t much you can do about it. However, if it’s increasing due to excess use on your part, try to look for alternative means to limit it.

For well-researched and tips to manage your electricity bills, Solar Cells has an interesting piece on that. Their blog also covers various environmentally friendly business tips that might come in handy.

3. You have a pronounced brand image.

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The image of your company is an asset on its own. The more pronounced it is, the more likely you’ll gain more funds for investment and expansion. That being said, this isn’t the only important factor when seeking investment. Others like tie ratio and value of assets also count.

To understand more about the concept of tie ratio, Stanziq has a great piece on that. Their tech writers bring you invaluable information around business, personal finance, and tech.

4. You have a consistent delivery of quality products and services.

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Irrespective of training and practice offered to employees, establishing a consistent flow of quality products and services is quite a hectic job, which may take a while to perfect. The good thing is you won’t waste any effort by putting in a lot of energy and the right amount of money. What’s more, you can use the progress made along the way in attaining the level of perfection to measure business growth.

A company that delivers an optimal level of consistent quality is sure to be highly patronized. With the right price, it becomes the best option for customers. The bottom line is; delivering quality consistently results in holistic growth.

5. You have a strong corporate trust.

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As a business owner, you know you have attained the ultimate corporate trust when a lender no longer needs an income statement from you, or when they don’t need to validate if you’ll fulfill your debt obligations. Corporate trust and partnership don’t come easy. It takes years to forge such a relationship with creditors. The fact that you can assure them of your company’s integrity speaks volumes.

Furthermore, lenders are known to scrutinize the financials, and they look at many factors that indicate growth before availing you that trust. So, the more trust you notice you’re gaining from them, the better and faster you can tell you are growing.

All in all, if you want to ensure your business is on the right track in terms of growth, the above indicators will help.