How successful are you in your business?

Measurement of success in Business

There are many notions of business success.  Whenever I travel and meet business people they always ask me questions for making more money or growing the business.

Many studies have been done over how to measure/achieve success in business. These studies primarily relate to large businesses. In western market-oriented economies and countries, business success is measured through market capitalization. It is assumed that the market will assess all the importance.

But MSME businesses including retail businesses also need to assess their success in a different manner.

Based on various studies and ancient India wisdom, I have concluded four factors that indicate the success of the business. Business owners must assess their performance using these factors and then decide the extent of their success.

These factors are

1.Physical health of the business(Business PH)

2.Intellectual health of the business (Business IH)

3.The emotional health of the business(Business EH)

4.The spiritual health of the business (Business SH)

Let’s understand the factors in a better manner:-

1.Business PH

This factor relates to physical well being and adequate protection of business from business risks. Depending on the nature of business the PH indices might vary but this will primarily relate to

a.Revenue

b.Gross margins

c.Profits

d. Growth in above financial parameters

e. Employment generation

f. Legal and ethical compliance, etc

2.Intellectual health(IH)

This aspect of business relates to the learning capability of the business. Each businessman must continue to learn and assimilate all aspects of business and business environment so that business has sustainability.

3.Emotional Health (EH)

I also call this a love quotient of business. It is primarily based on how strong the relationship of business with the people/stakeholders I.e customers, employees, suppliers, etc. Please note this is not about the business relationship but about human relationships. It is about the personal relationship of people who interact with people in the business under assessment. Do they “love” each other. Love is a mixture of art and science. We will talk about establishing and nurturing “love” in my next blog.

4.Spiritual Health(SH)

This is the most underrated index for success but it the most important part of the business. Businesses have now realized that we need a higher purpose to generate that extra energy and passion to run the business. Running the business can become very tiring and monotonous if this higher purpose is not embedded in our thinking. 

In Wep, we believe that we exist and work for making our end customers achieve bigger better business goals. All our other business goals are subservient to this higher purpose. Thus all businesses need to think, establish, and follow the higher purpose of their respective businesses.

Further elaboration is required in the above health indices. Let us take this some other day.

Have the most successful days ahead.

Content by:- 



RN Agarwal

Chairman

WeP Solutions Ltd




Dt. 09-05-2020