Is money a true indicator of the success of a business?
In what other ways could success in a business be measured?
Money is probably the first thing people think about when measuring success of a business. It is a true indicator of the success of a business but not the only indicator. The success of a business should also be measured in its employ satisfaction, contribution to the society and sustainability.
Money or more precisely, cash flow has been described as the blood of a business. Any profit company needs cash to maintain its operation. Profit is always the first thing the business owner or the investors would be looking at when they are reviewing the success of a business. The importance of money for a business will never be neglected due to its profit driven nature.
However, money should not be the only indicator of the success of a business. There are other factors need to be considered to measure the true success of a business. Firstly, employee satisfaction is another indicator. If a business is suffering from low employee satisfaction and big staff turnover, it is very unlikely that the business can succeed in a long run. Secondly, the contribution to the society by a business also cannot be ignored. A business is regarded as a successful business not only based on its profits but also the responsibility it has taken for the society. For instance, a successful business should be one creates jobs for the local community. In addition, sustainability is also one of the criteria for a successful business. A successful business should not be running on the expenses of polluting our living environment. Decision making inside of a successful business should be assessed in a long term rather than focussing on short term capital gain.
In conclusion, while money is an indicator of the success of a business, it should not be taken as the only indicator. The success of a business also needs to be assessed based on other indicators such as employee satisfaction, contribution to the society and sustainability.
