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How Can You Tell If Your Business Is Healthy or Not?

signs of a healthy business, growing revenue

A growing business has a lot to worry about. Rising expenses, employee turnover, lack of focus on customer service, more responsibility, higher pressure, and much more can easily overshadow all the good work your company is doing. Keep in mind, an influx of customers and clients won’t always mean you’re in the green light. 

One of the biggest struggles a business owner will face is keeping their company in good overall standing every month. If you want to have a solid understanding of how healthy your company is at any given time, you have to know how to distinguish the signs of a healthy business from the signs of a failing business. 

To help give you back your peace of mind when evaluating your business, we’ve put together our three most prominent signs of a healthy business. We’ll also discuss how you can right those wrongs and start forging a new path for your company. 

1. Growing Revenue

When evaluating your company, revenue will play an essential role in how successful your company is. Revenue is the total income your business brings in each month before expenses. This shouldn’t be confused with profit, which is what’s left after expenses. 

An increase in revenue shows that your marketing strategies are working well and customers are responding well to what you have to offer. It also highlights trends that your marketing and sales team should be aware of. 

When trying to grow your revenue, there are four main ways to do so: increase your prices, increase the number of customers you see month-to-month, increase how much those customers are spending per transaction, or increase how often those customers are purchasing from you. 

2. Expenses Aren’t Rising Out of Control

Growing revenue is always great, but it will almost always result in a rise in monthly expenses. This can come from payroll expenses, manufacturing, marketing, customer service, and much more. 

Ideally, you’ll see a healthy balance between your revenue growth and expense growth. If you see a 5% increase in revenue, you shouldn’t see more than a 5% increase in expenses. If you are, you’ll need to start considering ways to cut expenses. 

There are a variety of ways to cut expenses effectively and some of them will be no-brainers. A great start would be going paperless, finding cheaper service providers, and more productive marketing strategies; however, you shouldn’t stop there as there are many other ways to cut expenses.

3. New Clientele & Repeat Customers

The first goal of your marketing strategy is to gain new clientele. The second goal of your marketing campaign is to ensure those new clients turn into repeat customers. If you see both of these areas do well, then you’re doing something right!

As a business owner, finding ways to appeal to different audiences, increase your exposure, and increase loyalty within your customer base must be your top priority. 

If you begin to notice your clients falling off, expenses rise out of control, or revenue starts to dip, then it’s time to talk to a professional so they can help you get your business off its feet. Contact us today if this sounds like you!


Hamburg-Coplan, Jill. “Vital Signs: 7 Savvy Ways to Gauge Your Company’s Health.” Inc.com, Inc., 21 Jan. 2014, www.inc.com/magazine/201402/jill-hamburg-coplan/calculate-company-finances.html.

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