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How To Calculate Business Success?

If you are running your business decided accordingly business model, then it is necessary to keep track record of your business’s success to grow it in better way. By keeping success and failure track record of your business help you to create new business strategies among with motivation. You may get inspiration for developing brand new idea rather than your current business that probably chain up its success story. But now, how it is possible to measure a business success? What kind of parameters it includes? Complex questions! But, you will find your answers below :

Also Read: The Science Behind Managing Business Capital Effectively

Profitability & Gross Profit Margin

Profitability and gross profit margin depends on your efforts that you put into your quality of services. It is the amount of remaining asset after your total investment by considering whole business requirements. Profitability and gross profit margin is the mirror of your business success that can be measure by following formula :

“Gross Profit Margin (%) = Revenue-Cost Of Goods Sold/Revenue”

Where, revenue is the sales of turnover or income of general business activity.

Return On Asset

It can be calculated by dividing net income by average total assets. It is the product of the profit margin. Formula is given by :

“Return On Asset = Net Income/Total Asset”

It also stand as return on investment and it tells you what earnings has been generated by invested capital.

Your Satisfaction

Your satisfaction is depends on your expectations from your generated business growth. So to calculate it you must have to make ready sheet of your expected requirements and total expected revenue from your business on days, monthly and yearly basis. Make a great flow chart of it and mention clear values and keep the track record according to these figures, so that you can examine your turnover as well as satisfaction level.

Return On Equity

Return on equity is a ratio that provides investors with insight into how efficiently a company is managing the equity that shareholders have contributed to the company. We can measure it by following fomulae to fix up the business success :

“ROE = Net Income/Shareholders Equity”


“ROE = Dividend Growth Rate/Earning Retention Rate”

Social Media Success

Remember do not ever take it blindly about social media marketing success, psychology is that, most of the people spend their time online and in this internet era no one on earth does not knowing about internet and especially social medias. People are more inclined towards social media and market rather TV sets and other communication channels. So take advantage of it to make sure about your business success. Invest to build best social media team for your business success among the measuring part and generating leads.


Your business growth depends on how you keep up a track with your business success, it help you to get over of various conflicts and long last your focus directed towards successful business. Hope this article has helped you!