{"id":39680,"date":"2021-12-06T04:02:49","date_gmt":"2021-12-06T04:02:49","guid":{"rendered":"https:\/\/act.com\/?page_id=39680"},"modified":"2023-01-10T11:05:44","modified_gmt":"2023-01-10T18:05:44","slug":"measuring-business-growth","status":"publish","type":"page","link":"https:\/\/products.act.com\/en-gb\/measuring-business-growth\/","title":{"rendered":"Measuring Business Growth"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"39680\" class=\"elementor elementor-39680\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1cbc80ba topSctGlb elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1cbc80ba\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-58531c5c\" data-id=\"58531c5c\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-39b2e620 elementor-widget elementor-widget-heading\" data-id=\"39b2e620\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-default\">How to measure business growth<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-539a67a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"539a67a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-61718a4\" data-id=\"61718a4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-9432e03\" data-id=\"9432e03\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cc91cfd elementor-widget elementor-widget-text-editor\" data-id=\"cc91cfd\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<div class=\"sfContentBlock\"><p><strong>It\u2019s crucial that businesses know how fast they are growing<\/strong>. Having this knowledge will help managers plan for the future as well as show if their\u00a0<a href=\"https:\/\/www.act.com\/en-gb\/business-growth-strategies\/\">growth strategy<\/a>\u00a0is working.<\/p><p>If owners know they are likely to have 10 per cent more customers in six months\u2019 time, they can begin to make structural changes to prepare such as hiring new employees or purchasing new equipment.<\/p><p>This article will look at how to measure business growth.<\/p><h4>Define your business growth goals<\/h4><p>The first step to measuring business growth is to decide on your goals. These will likely be related to the\u00a0<a href=\"https:\/\/www.act.com\/en-gb\/business-growth-stages\/\">growth stage your company is at<\/a>.<\/p><p>For start-ups, the goal may simply be to build a customer base and grow sales, even if it means making a short-term loss due to costs associated with the expanding business. However, more established companies may want to improve profit levels while keeping a steady flow of new prospects.<\/p><p>Here are some growth metrics businesses can focus on:<\/p><ul><li><strong>Revenue<\/strong>\u00a0\u2013 Revenue shows how much money a company is bringing in.<\/li><li><strong>Higher profits<\/strong>\u00a0\u2013 Higher profits are generally a sign everything is going well. However, businesses will still have to look at factors like the number of customers being onboarded or leads coming in to ensure future success.<\/li><li><strong>Higher sales<\/strong>\u00a0\u2013 Increases in sales usually suggest a company is growing. Business owners should be wary if a short-term sales increase has been brought about by factors such as heavy discounts or if the increase in sales causes the company to be in danger of overtrading.<\/li><li><strong>More customers<\/strong>\u00a0\u2013 More customers are a sign of growth. However, it can be an issue if customer acquisition costs are high and customer retention is poor.<\/li><\/ul><h4>Collect data based on these goals<\/h4><p>Once a business has defined what it wants to achieve, it will need to collect data based on these goals. The more data companies have, the more accurately they can measure growth.<\/p><p>More data will also enable businesses to spot potential issues. For example, a business may be about to reach its target of 10 per cent annual revenue growth. However, having access to customer acquisition data as well as revenue data could show that the company is failing to keep customers; with the growth instead being facilitated by costly marketing campaigns. This would point to issues in customer retention that, once taken care of, could significantly increase the business\u2019s profitability.<\/p><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-38ed1cd elementor-widget elementor-widget-shortcode\" data-id=\"38ed1cd\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-shortcode\">\t\t<div data-elementor-type=\"section\" data-elementor-id=\"62983\" class=\"elementor elementor-62983\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-45418d4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"45418d4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-8182646\" data-id=\"8182646\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2fac0049 elementor-widget elementor-widget-heading\" data-id=\"2fac0049\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Start Creating More Meaningful Relationships With Act!<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-34339b3c elementor-widget elementor-widget-text-editor\" data-id=\"34339b3c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\tStart your 14 day free trial today. No download or credit card required.\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-62a725b7 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"62a725b7\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.act.com\/en-gb\/trial\/act\/\" id=\"free-trial-speedbump-button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Start Free Trial<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4da0d30 elementor-widget elementor-widget-text-editor\" data-id=\"4da0d30\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"sfContentBlock\"><p><span style=\"font-size: 18px; font-weight: 400;\">Don\u2019t forget outside factors<\/span><\/p><p>When measuring your company\u2019s growth rate it is important to take outside factors into consideration.<\/p><p>For example, a company may look at a huge increase in monthly sales and put the success down to a recent marketing campaign. However, if the month was December and the company was a toy store, the increase in sales is just as likely to be due to the holiday season. Having long term data can help here as businesses can use this to get a view of wider trends.<\/p><h4>How to calculate your company\u2019s growth rate<\/h4><p>It\u2019s easy to calculate your company\u2019s growth rate using this business growth rate formula. You simply need to compare the figures that show a growth metric now to a figure that shows a growth metric at a point in the past.<\/p><p>For example, imagine a company that brought in \u00a3200,000 of revenue in 2018 and \u00a3160,000 in 2017.\u00a0 To find out the annual growth rate, you find the difference between the 2018 and 2017 revenue<br \/>(\u00a3200,000- \u00a3160,000= \u00a340,000).<\/p><p>You then divide this difference by the revenue brought in one year ago and change the figure to a percentage (\u00a340,000\/ \u00a3160,000=0.25=25%). This puts the company\u2019s annual growth rate at 25 per cent.<\/p><h4>Finally, be sure measure growth regularly<\/h4><p>Measuring growth should be done on a continuous basis. Keeping monthly or quarterly records will give owners useful insight into how their business is expanding, allowing them to ensure they are growing at a rate that meets targets, without being at risk of overtrading.<\/p><\/div><div class=\"sfContentBlock\"><h4>Learn more about Business Growth:<\/h4><ul><li><a href=\"\/en-gb\/business-growth\/\">What is business growth and why is it important?<\/a><\/li><li><a href=\"\/en-gb\/business-growth-stages\/\">What are the business growth stages?<\/a><\/li><li><a href=\"https:\/\/www.act.com\/en-gb\/marketing-tools-for-business-growth\/\">Marketing tools for business growth<\/a><\/li><li><a href=\"https:\/\/www.act.com\/en-gb\/business-growth-strategies\/\">6 powerful business growth strategies for small businesses<\/a><\/li><\/ul><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1155669 elementor-widget elementor-widget-image\" data-id=\"1155669\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t<a href=\"\/en-gb\/guides\/best-crm-software\/\">\n\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"241\" src=\"https:\/\/products.act.com\/wp-content\/uploads\/2021\/11\/how-to-choose-the-best-crm.jpg\" class=\"attachment-large size-large wp-image-36600\" alt=\"\" srcset=\"https:\/\/products.act.com\/wp-content\/uploads\/2021\/11\/how-to-choose-the-best-crm.jpg 1024w, https:\/\/products.act.com\/wp-content\/uploads\/2021\/11\/how-to-choose-the-best-crm-300x71.jpg 300w, https:\/\/products.act.com\/wp-content\/uploads\/2021\/11\/how-to-choose-the-best-crm-768x181.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-3fc358f\" data-id=\"3fc358f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3429fa7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3429fa7\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c2fab5a\" data-id=\"c2fab5a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-36c3438 elementor-widget elementor-widget-heading\" data-id=\"36c3438\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Big results. Small investment.<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b7c08e8 elementor-widget elementor-widget-heading\" data-id=\"b7c08e8\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Ready to take the first step?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-18b0033 elementor-align-center elementor-widget__width-auto elementor-widget elementor-widget-button\" data-id=\"18b0033\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-md\" href=\"https:\/\/www.act.com\/en-gb\/trial\/act\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Try it free<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>How to measure business growth It\u2019s crucial that businesses know how fast they are growing. Having this knowledge will help managers plan for the future as well as show if their\u00a0growth strategy\u00a0is working. If owners know they are likely to have 10 per cent more customers in six months\u2019 time, they can begin to make [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[],"tags":[],"folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v22.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Measuring Business Growth<\/title>\n<meta name=\"description\" content=\"Measuring business growth is a crucial step to help business owners plan for the future. 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