Signs of Success: How Do You Know When Your Business Is Getting There?

Defining success is a difficult thing for an entrepreneur. Of course we would all like to think of ourselves as successful - not least because the alternative is so unpleasant - but what we would like to think and what we do think are often different. It’s not a secret that the entrepreneur and small business community is prone to imposter syndrome, and it’s easy to get into a mindset that doesn’t accept plaudits. When success is tough to define, it can be hard to accept because, let’s face it, when you’re setting your own bar there’s nothing to stop you setting it a bit higher every time you get near it.

It can help to have some predetermined rules that identify when a business is genuinely having success. When you have these in place, it becomes a lot trickier to turn around in the face of business success and claim that it isn’t enough. This is important, because even if you want to build on existing positive outcomes, you still have to be capable of giving yourself the occasional pat on the back. Never being satisfied means never taking a break, and if you don’t enjoy the sunshine every once in a while, burnout is rarely going to be far away.

Does your turnover cover your outgoings?

When you first start a business, a lot of the money you spend to get things off the ground will either be borrowed or taken from your savings. To make a long story short, it’s a financial risk that can’t be indefinitely sustained. One sure-fire sign that you’re having real success in business is that every month, your takings are more than covering outgoing costs. If you don’t have to indebt yourself further to pay for the essentials, you’re doing the right things to ensure profit - and it means that your business idea is working, so you deserve credit.

What does the raw data say?
To some extent, the last person who should be judging your success is you. Few of us have a 100% realistic picture of ourselves, and “marking your own homework” inevitably leads to some of us being unreasonably harsh on ourselves while others are unable to be self-critical. So when judging if you’re getting it right, it is worth asking others. This can include referenced data such as customer experience analysis to see what you’re getting right. It can also mean simply listening to the feedback your customers give you. People won’t say you’re nailing it if you’re not, so be prepared to take a compliment.

How do you react to mistakes?

One flaw that an entrepreneur cannot afford to have is perfectionism. Indeed, if you read that sentence and were surprised that perfectionism could be considered a flaw, then maybe entrepreneurship isn’t for you just yet. Here’s the thing: you are going to make mistakes and the world is not going to fall apart when they happen. If you are increasingly reacting to mistakes by saying “OK, so what have I learned from that?” as opposed to “Oh no, I think I just killed my business”, then you can take that as a sign that you’re getting more right than wrong, and that your business is going to be just fine.