“Is my Business Growing?” Here’s 5 Ways to Measure Business Growth in 2023!

Hi there, business owners! So, Q1 is over and we’ve put in the work daily for 3 months now to see our customer base grow, increase our sales and even get our customers to come back. And now, it is time to measure everything that’s been done in this first quarter of the year and compare them to the overall goals and objectives for the quarter or year, to know where the business stands, what’s improved, what needs to be improved on and what next steps to take.

Your first question might be: Why do I have to measure my business growth? These are 5 super important reasons why you should measure and track your business growth.

• To track progress: Like I said earlier, measuring growth helps you see what's working and what's not, which allows you to adjust strategies and make better-informed decisions.

• To identify opportunities: By looking at your performance, you can identify opportunities and where there is room for improvement or expansion, such as new markets to tap or innovative products and services to offer.

• To monitor performance: It also helps you monitor your business's performance, such as sales revenue, cash flow, and profitability. This helps you stay on top of your finances and track success metrics over time.

• To make data-driven decisions: Measuring growth helps you make informed decisions. Instead of relying on gut instincts or assumptions, you can base your decisions on data, which results in better outcomes.

• To attract investors: It's so much easier to attract investors when you have the data. Measuring growth shows potential investors that the business is tracking key metrics and working towards goals, giving them more confidence in the business's potential for long-term success.

5 Ways to Measure Business Growth in 2023

Now, let’s talk about the ways to measure your business growth. As a business owner, these are the key metrics to track and questions to answer.

1. Revenue:

How much revenue did I make?

This is the first metric to measure. If you’re measuring your business growth over the first quarter of the year, that means you’re tracking from January to March. Revenue is the total amount of money that your business earns through sales of products or services during a particular period of time. Think of it as the income or the financial gain that a company gets from its operations. This is an important metric to track so that you know if your business is bringing in more money over a period of time or not.

2. Profit:

How much profit did I make?

It is important to not confuse the revenue your business has made with its profit. To calculate your profit, subtract the cost of goods sold, taxes, salaries, rent, and other overhead costs from the revenue made. Your profit is what you’re left with after those deductions.

By measuring profit, you can understand better how much your business is spending and earning, and make better decisions on where to allocate more resources, e.g increasing number of staff or putting more money into marketing.

Pro tip: Use your Bumpa analytics dashboard to track your revenue and profit at a glance, with historical data if you need to compare to the previous quarter!

3. Sales:

How many products did I sell?

You can break this down not just by the total number of products sold, but also by how each individual product has performed, especially if you sell multiple items.

For instance, if data shows that Product A sells faster and more than Product B, you can stock up more on Product A in the next quarter. This approach also helps you avoid tying up money in products that don't perform well!

4. Returning Customers:

How many previous customers came back? How often?

This is a very important metric because it’s not sustainable to spend all that money acquiring new customers, only for them to never come back. This metric tells you whether your customers are coming back and if they aren’t, it helps you understand what you might be doing wrong and how to fix that in the next quarter so that you don’t lose out on returning customers.

It could be customer experience or a flaw in processes, but with a quick survey to your customers, you can find out what will make them keep coming back. You can put out a poll on twitter or use a simple tool like Google Forms or SurveyMonkey to get quality feedback from your customers!

5. New Customers:

How many new customers did I get?

This is the last important metric you need to track the growth of your business. You need to know how many new customers have come to your business over a period of time, and also what channel they came from, what content or ad they saw, what made them decide to purchase a product from you. This will help you know what channels you’re getting the best customers from, and how to optimise it to get more customers!

Related: How to Get more Customers and Increase Sales for your Business

Final tip: All of these metrics can be tracked on your Bumpa app with ease! See your revenue, profit, expenses, how much products you've sold, new customers, returning and so much more from your analytics dashboard. You can keep track of your business growth in one glance!

Conclusion

Measuring business growth is essential for success. To ensure your business is on the right path, you need to track the key metrics listed above. By doing so, you can make informed decisions about your business for maximum efficiency and profitability. On your Bumpa, you can easily track all your metrics in one glance. Download the app for Android or iOS and get started!

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