Many small business owners wonder how they can better understand and ask, “how can I know the growth of my business?” And they have every right to wonder about this. If you are not able to understand the direction of your business, then how can you course correct?
Today we are to briefly overview the three main ways to gain this understanding. First we will discuss Key performance indicators (KPIs) and how they can be used to assess the success of a small business. Next, we will review and provide a example of a SWOT analysis. A SWOT analysis which is a strategic tool for small businesses to identify their strengths, weaknesses, opportunities, and threats. And finally, we’ll take a look at soliciting feedback from customers, employees, and stakeholders through surveys, interviews, focus groups, or other methods.
Key Performance Indicator
One way to assess the direction of your small business is to track your key performance indicators (KPIs). These are measurable values that reflect how well you are achieving your business goals. Some examples of KPIs are revenue, profit margin, customer satisfaction, employee retention, etc.
Getting Down to Eye Level
Imagine you are playing a game with your friends. You want to know how well you are doing in the game, right? You want to know if you are winning or losing, if you are having fun or not, if you are learning new skills or not. How do you find out these things?
One way to find out is to use something called key performance indicators, or KPIs for short. KPIs are like scores or goals that tell you how well you are doing in the game. For example, one KPI could be how many points you have scored in the game. Another KPI could be how many times you have helped your teammates in the game. A third KPI could be how much you have improved your skills since the last time you played the game.
Example of KPIs
KPIs are not only useful for games, but also for other things in life. For example, if you want to be a good student, you can use KPIs to measure your progress. One KPI could be how many homework assignments you have completed on time. Another KPI could be how well you have done on your tests and quizzes. A third KPI could be how much you have learned from your teacher and classmates.
Tracking your KPIs means keeping track of how well you are doing with your KPIs over time. You can use different tools to track your KPIs, such as charts, graphs, tables, or apps. Tracking your KPIs can help you see where you are doing well and where you need to improve. It can also help you set new goals and plan your next steps.
Tracking your KPIs is like having a map that shows you where you are and where you want to go. It can help you make better decisions and have more fun along the way.
Another way to tell where your small business is heading is to conduct a SWOT analysis. This is a strategic tool that helps you identify your strengths, weaknesses, opportunities and threats. By analyzing these four factors, you can gain insights into your competitive advantage, potential challenges and areas for improvement.
A SWOT Analysis is a way of thinking about something you want to do and how to do it well. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Let me explain what each of these words mean.
Strengths are the things that you are good at or that make you special. For example, maybe you are good at math, or you have a lot of friends, or you can play an instrument. These are your strengths because they help you achieve your goals and make you happy.
Weaknesses are the things that you are not good at or that make you struggle. For example, maybe you are bad at spelling, or you have trouble making decisions, or you get nervous in front of a crowd. These are your weaknesses because they make it harder for you to achieve your goals and make you unhappy.
Opportunities are the things that can help you improve or grow. For example, maybe you have a chance to join a club, or learn a new skill, or meet someone who can help you. These are your opportunities because they give you more options and possibilities for the future.
Threats are the things that can harm you or stop you from achieving your goals. For example, maybe you have a bully at school, or a difficult test coming up, or a family problem. These are your threats because they cause you stress and worry and limit your choices.
A SWOT Analysis is a way of writing down your strengths, weaknesses, opportunities and threats on a piece of paper. You can draw a big square and divide it into four smaller squares. In each square, you write one of the words: Strengths, Weaknesses, Opportunities and Threats. Then, under each word, you write down some examples that apply to you and your situation.
Example of a SWOT
For example, let’s say you want to run for student council president. You can do a SWOT Analysis to help you decide if it is a good idea and how to prepare for it. Here is an example of what it might look like:
|I am good at speaking in public||I sometimes forget my homework|
|I care about the school and the students||I don’t have much experience in leadership|
|I have many friends who support me||I am not very organized|
|I can learn new skills and meet new people||There are other candidates who are more popular|
|I can make positive changes in the school||There might be conflicts or disagreements with other students|
|I can boost my confidence and self-esteem||There might be too much work and pressure for me|
A SWOT Analysis helps you think about the pros and cons of doing something. It also helps you identify what you need to work on and what you need to watch out for. By doing a SWOT Analysis, you can make better decisions and plans for your goals.
Solicit Feedback from Stakeholders
A third way to tell where your small business is heading is to solicit feedback from your customers, employees and stakeholders. You can use surveys, interviews, focus groups or other methods to collect their opinions and suggestions. This can help you understand their needs, expectations and satisfaction levels, as well as identify any gaps or issues in your products or services.
Imagine you are working on a project with your friends. You want to make something that everyone likes and enjoys. How do you know if your project is good or not? How do you know if you need to change something or add something?
An Example of Feedback
One way to find out is to ask for feedback from the people who care about your project. These people are called stakeholders. They are the ones who have a stake or an interest in your project. They could be your friends, your family, your teacher, or anyone else who might use or benefit from your project.
Soliciting feedback from stakeholders means asking them what they think about your project. You can ask them questions like:
- What do you like about our project?
- What do you think we can improve?
- Do you have any suggestions or ideas for us?
- How do you feel when you see or use our project?
Soliciting feedback from stakeholders is important because it helps you learn and grow. It helps you understand what works and what doesn’t work in your project. Knowing what your customer think will help you make your project better and more useful for everyone. It also shows that you care about the people who care about your project.
Soliciting feedback from stakeholders is not always easy. Sometimes you might hear things that you don’t like or agree with. Sometimes you might feel hurt or angry or sad. But remember, feedback is not meant to hurt you or make you feel bad. Feedback is meant to help you and make you feel proud. Feedback is a gift that shows that someone cares about you and your project.
Small business owners must prioritize understanding the growth of their business to course correct and succeed. There are three essential ways we covered today to gain this understanding were: 1) utilizing Key Performance Indicators (KPIs) to measure success, 2) conducting a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, and 3) gathering feedback from customers, employees, and stakeholders through surveys, interviews, focus groups, or other methods. Take control of your business and implement these strategies today.
Recap: 3 Key Indicators Revealing the Growth of My Business
Small business owners often struggle with understanding and measuring the growth of their business. It’s a valid concern and one that needs to be addressed urgently. After all, how can you steer your business in the right direction if you don’t know where it’s headed? Fortunately, we’ve got three proven ways to help you gain the clarity you need. First, start by measuring key performance indicators (KPIs) to assess your business’s success.
Second, use a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Finally, gather feedback from customers, employees, and stakeholders through surveys, interviews, focus groups, or any other relevant methods. With this powerful knowledge in your arsenal, you’ll be able to make informed decisions and take your small business to the next level. Need a SWOT analysis? Become a Get Savvy Go-Gether today and gain access the worksheets, workbooks and courses that will enable you to be smarter about your business and it’s growth.