Business milestones are indicators that signify positive growth for your business. A small business doesn’t grow to become a large corporation in a few months or years. It is a gradual process that takes time. But there must be significant progress made every day. This progress must be tracked regularly and constantly.
Business milestones help to confirm that you are on the right path to success. They also help prove your business worthy of receiving a small business loan from Camino Financial and other sources.
Here are some important small business milestones that you must measure as a small business owner.
A viable business model
The first milestone that a small business needs to check is the viability of its business model. Is your business model sustainable in the near future? Is it something that people are willing to spend their money on? Are you providing a solution? Is your business something that you can scale up and expand? Can you sustain your current customer base while reaching out to new customers? Do you have the time and energy to sustain the business momentum?
If you answer yes to these questions, that is a good sign. It is a good milestone that shows that the business is worth spending time, effort, and investing on. It will also help to clarify your thought process about the business and boost investor confidence where necessary. Ask these questions regularly, and continue to question the viability of your business model so you can make necessary adjustments as needed.
Market response and customer growth
The next business milestone to check is the market response to your business offerings. Do people like your product? Are your customers growing? Have you moved from 5 customers to 10 customers to 25 customers to 50 customers to 100 customers to 500 customers to 1000 customers? This milestone is incremental and must be upgraded continually to indicate that you are progressing.
The next milestone to track is business revenue. How has your revenue increased monthly or quarterly? Is your revenue enough to cover your expenses and leave extra for profits? What next can you do to improve your business revenue? What is the most important step that you could take as an entrepreneur to double your business revenue? These questions are very salient and will determine if your business will last for decades or fizzle out with no cash left to run it.
Employee growth and retention rate
Even if you started your business as a one-man thing, you can’t continue like that forever. As your business grows, you’ll need to hire more hands to help out. The employee growth rate is one of the most important milestones to check in a business. Employee retention rate must also be checked. Do you cultivate a positive or toxic workplace? Are employees happy to grow with you, or do they leave your business after a few weeks or months?
Office and physical infrastructure growth
Improvements in office space are another important business milestone that should be considered. Your office space should increase as your business succeeds. You can’t start and remain with the same office space that you did ten years ago. A business that is genuinely growing should have either moved to a larger office or expanded its space, or at least added more office equipment and infrastructure.
The milestones listed here are critical and must be considered seriously by your business. Once you’ve attained a certain level of business progress, as evident by these milestones, it might be time for you to expand your business by applying for a small business loan from Camino Financial.