The best predictors of investment success for any business should be visible and be able to guide the business owner on the way forward. It is important for all business owners to gauge and see if their line of business is successful of not. There are some indicators that will show the direction the business is taking and what measures should be applied for a successful business.
1. Breaking Even- When one starts a business they should be able to tell the future of the business right from the start, it is possible to tell this by looking at how much they are making and how much of that is towards operational costs, bills and utilities. If a business is able to cater for these items then they business future is looking good. It is true that in the beginning some business may experience a scenario where they are only meeting their costs and not making any profit, this is fine with time as the business grows then the profits can be realized. This might take time especially on the nature of business, sometimes it may take a business over 4 months to realize a profit or make a sale. So long as one can still pay for the costs involved in keeping the business open then this is a good indicator that the investment was a wise choice. When all the sales volumes made is able to pay for all the fixed costs like rent, telephone bills and any other daily operating costs then this is a good start to success.
2. Start to earn a living wage- After months of existence the business owner should be able to start earning an income from the business. This however does not mean that now a business owner is making a profit, it only means that the business owner can now earn a living wage that will help them cater for their family needs. This is also an important stage of the business and an indicator that the business is likely to do well in future, by the time it can pay for all the operational costs and in addition pay the owner a living wage then this is a good sign that the business has a bright future ahead.
3. Real Profit Making Starts- When the business has developed from meeting operational costs and paying the wages then it can now make some profits, then this is a very good sign that the business is doing quite well. This is a very important stage in any business, it shows the level of maturity of the business and it also means that there is so much that can be achieved by the business. This may however take sometime for a business owner to reach this stage but it can be attained with hard work and patience.