The Metrics That Matter: What A Successful Business Really Looks Like
It’s easy to feel overwhelmed by the sheer volume of metrics used to measure success out there. Each one vying for your attention, promising to unlock the secret to making bank. But the truth is, only a few truly matter. Your numbers are an excellent reflection of your position but they’re not the only metrics you should measure. Especially when it comes to playing the long game for ultimate success.
Profit is of course the ultimate metric – let’s dive into a few other key work and life indicators to support you to reach the success position you’re striving for.
Your Cashflow Is In The Green
Cashflow is the money flowing in and out of your business. When your cashflow is in the green (positive cashflow), your business has more money coming in than going out. This is a great sign your business is profitable and sustainable. Tick!
On the other hand, negative cashflow can signal trouble for your business. If you’re consistently spending more than you’re earning, it’s time to take a hard look at your numbers and make adjustments.
Sometimes, businesses can slide between both. The big question is: are you purposely in the red because you have something brewing with your strategic business decisions, or are you consistently in the red and don’t really know or understand why? Do you know what steps you took to get into the green or is it a happy accident? Understanding your unique business metrics and taking swift action is key!
Liabilities Don’t Cause Stress
Spending money to make money is a delicate balance which is hard to strike during the early days of business. Once you’re established, there should be less stress around your liabilities.
The most successful business owners I see have a smooth set-up that’s almost seamless. Then once I’m on the case, practically invisible. Because they know what is due when and have funds safely squirrelled away at the ready.
- Expenses are budgeted for and paid without breaking a sweat.
- Savings accounts have been set up for:
- Tax Liabilities
- BAS Payments
- Business Savings
By keeping liabilities in check, businesses can avoid unexpected panic and instead, focus on achieving long-term success.
Work-Life Balance is Achieved
So here’s the tea, your numbers only tell you one side of the story. Your metrics may point to a flourishing future but it will only be possible if your growth is sustainable.
Smart business owners ensure they are resourced and supported for long-term gain. A big part of this is prioritising their well-being.
If you’re hitting these metrics, you’re doing it right:
- Sensible work hours
- Guilt-free holidays
- Sick leave without stress
- Clear boundaries
Financial stability can help you build a balanced lifestyle. Chasing both will set you up for growth.
Innovation is Flourishing
Burnt-out business owners ‘maintain’. Well-rested business owners ‘innovate’. When creativity is at an all-time high, excellence follows. And from that? Growth. New products. Sharper services. And ultimately? Continuous improvement.
Chasing new ideas, challenging the status quo and having the numbers to back you up is the right recipe to skyrocket your success.
You’ve Found Your Flow
When you’re truly in flow you are fully engrossed in your work. New ideas come quickly, creativity is high and you’re achieving consistently with energy to spare.
The opposite looks like procrastination, avoidance and apathy towards your work.
A big driver in achieving flow is having the right tools, resources and support in place to step into your zone of genius. Successful business owners know when it’s time to lighten their workload and outsource to experts.
Prioritising your flow above all else will increase your productivity, and boost your creativity and happiness. Don’t let it slide for the sake of business functions you can be palm off easily!
How many metrics are you hitting?
We can work with you to analyse your numbers, manage your books AND give you a better work-life balance by removing bookkeeping from your to-do list. Have a scroll through our services and book a discovery call so you can get back to innovating!
