Measuring success in business Flashcards
What are the main ways to measure business success?
Revenue, Market Share, Customer Satisfaction, Profit, Growth, Owner/Shareholder Satisfaction, and Employee Satisfaction.
What is revenue?
The total money a business earns from sales before expenses are deducted.
Why is revenue important for business success?
Higher revenue shows strong sales and demand for products
What is market share?
The percentage of total sales in a market that a business controls.
Why is market share important?
A high market share means the business is competitive and dominant in the industry.
How is customer satisfaction measured?
Through surveys, reviews, and repeat purchases.
Why is customer satisfaction important?
Happy customers are more loyal and likely to recommend the business.
What is profit?
The money a business makes after subtracting all costs from revenue.
Why is profit important for business success?
Profit allows businesses to grow, invest, and reward owners/shareholders.
What are ways a business can grow?
Expanding into new markets, increasing sales, or launching new products.
Why is owner/shareholder satisfaction important?
If owners and shareholders are happy, they are more likely to invest and support the business.
How can businesses keep employees satisfied?
Good pay, benefits, work-life balance, and a positive work environment.
Why is employee satisfaction important?
Happy employees are more productive and stay with the company longer.
