If you’re wondering the best way to measure business growth, you’re not alone. I haven’t met a CEO or stakeholder yet that hasn’t wondered the same thing.
Now, before I continue, I’d like to set the stage.
First, push everything else you’ve heard and read about business growth out of your mind.
Once you’ve done that, keep reading.
How to Measure Business Growth
Tracking, analyzing, and understanding key metrics is of course critical to measuring business growth effectively.
But metrics aren’t the only way to measure growth. Sure, performance can be measured with ease. But what about employees who consistently go above and beyond off paper? Or employees with exceptional customer service skills that are not tracked formally?
If you’re wondering how these or similar situations convert when assessing business growth, here’s how.
4 Simple Steps to Assess Business Growth
1. Form a Leadership Team
When we work with clients on sales growth initiatives, we begin the process by forming leadership teams. This is especially helpful when it comes to Sales PlayBook creation and management because it creates an environment where people are comfortable collaborating and exchanging information.
So, we recommend forming a leadership team with business growth as their specific initiative. Then task the team with tracking the areas noted below.
Your employees are the lifeblood of your company. But that goes without saying, right?!
That’s why “people” is first on this list. If you want to measure business growth, start with the most important part of your business: your people!
As the year progresses, perhaps on a quarterly basis, have members of your leadership team assess the following:
- Are our employees happy? Do they enjoy coming to work every day? Are there any “toxic” people on the team?
- Are our employees provided opportunities for growth? If so, how much growth is available to them? Is there a cap?
- Do we offer things that other employers don’t? (Ex. flexible hours, comped meals, etc.)
- Are our employees provided with proper training? Do employees receive continued training as they grow?
Having the right processes in place is essential to healthy business growth.
As Michael Gerber explains in The E-Myth Revisited, “Documentation says, this is how we do it here. Without documentation, all routinized word turns into exceptions. Documentation provides your people with the structure they need and with a written account of how to get the job done in the most efficient and effective way.”
With that said, set your team up for success by implementing a playbook. Here at CFS we use our online Sales PlayBook to document all processes—marketing, operations, and HR included.
Once your playbook has been created, assessment can begin. Have your leadership evaluate the following:
- Playbook Documentation
- Are team members documenting and updating processes on a consistent basis? Is there room for improvement in this area?
- What areas of the business are missing?
Now, the fun part: analytics! Much of what we’ve discussed up to this point requires a bit of manual tracking on behalf of the leadership team.
Tracking analytics, on the other hand, should be fairly simple if you have the right systems (and people) in place.
Metrics to assess:
- Sales: CRM
- Are my salespeople using the CRM properly? Is every contact and every lead making it into the system? (see: Jeremy Pound’s 7 Habits of Scalable Sales Teams)
- Are my salespeople updating opportunities on a consistent basis? Is the data accurate?
- If yes, how many leads, contacts, and opportunities are being added each month, quarter, and year?
- Have these numbers increased over the past quarter and year-to-year?
- Marketing: Inbound
- Is my marketing team using an effective inbound strategy? Do they have a content plan for each month/quarter?
- Do we have ranking keywords? If so, how many? How much traffic are they driving to our website?
- Are ranked web pages driving traffic to landing pages? Are the landing pages generating leads? If so, how many per month?
Noting the above will help to develop the metrics you need to understand changes that have taken place. Did your leadership team notice any inconsistencies when evaluating the data?
Now that all the puzzle pieces are laid out, it’s time to put the puzzle together.
Business growth isn’t only about financial gains. In fact, this is the first time I’ve even mentioned money!
If you have a strong leadership team, the right people, the right process, and efficient ways to track data, you’re well on your way to determining the probability of growth in your business.
So, try it out. Then let me know how this plan works for you as the year progresses.