Measuring Success in Business 

The success of the business can be measured in different ways 

REVENUE – Sales generated by a company are a guiding principle for its success. With each month or year the company’s revenues increased, most business owners felt more successful 

MARKET SHARE – It shows how a company does in a particular market. A company with a greater market share can dominate the market. This helps in improving the profile of the business and to raise the prices. 

CUSTOMER SATISFACTION 

Customers are important to a business as they are the people who buy the goods or services it provides. If customers are not satisfied the business will not be able to sell its goods or services, therefore no profit will be made and the company may go out of business. 

Customer satisfaction relies on good customer service. 

Customer service is the service a consumer receives before, during and after they have purchased a good or a service. 

There are many benefits to a business of providing good customer service: 

• customer loyalty 
• improved reputation 
• employee satisfaction 

PROFIT

Private sector businesses aim at profitability. As a result, increasing profit indicates that the firm improves and succeeds. 

• Businesses are able to make higher profits if there is no competition. 
• Businesses should also compare how much profit it made by other businesses (competitor) 
• Business should also see if its an objective of the business to maximise profit. 
• Businesses can check the success depending on the size of the business.

GROWTH 

Many businesses have an aim to grow, therefore the business is important when measuring success. The business should look at the main ones such as revenue, the number of employees, market share, the amount of capital employed, etc. 

Vocabulary

Overtading – taking on more work than a business can afford to fund effectively. 

OWNER/SHAREHOLDER SATISFACTION 

Shareholders measure success by buying or making more money, and overtime shareholders receive greater dividends. 

EMPLOYEE SATISFACTION

It is likely that the needs of employees in a company differ from those of shareholders or other owners. For their livelihood, employees depend on the business and on their wages. If businesses are growing and earning more, wages can rise. 

The Importance of Targets when Judging Success 

When running their businesses, many owners set targets. This makes measuring success easier.