How to measure business growth: a practical guide
Guide
Rising turnover alone does not prove that a company is growing. This guide shows which figures reveal real growth for a business in France, how to follow them with discipline and how to interpret them as a set.
Why track business growth?
Full order books and long working days do not always mean progress. Figures you can set side by side, period after period, show whether your decisions are paying off. Do not wait for year-end closing (clôture) and the expert-comptable's annual accounts: review your figures throughout the financial year (exercice).
Four key business growth metrics
Whether you run a micro-entreprise in Bordeaux or an SAS in Paris, four indicators are a good starting point:
- Revenue growth rate: the speed at which turnover (chiffre d'affaires) rises or falls from one period to another. Our guide explains how to calculate your revenue growth rate.
- Customer growth: how much the number of active clients has changed.
- Customer retention: the proportion of clients who keep buying from you over a given period.
- Gross margin (marge brute): what remains of turnover once the direct cost of the goods or services sold is deducted.
What each metric tells you
| Metric | Key question | Usual review frequency |
|---|---|---|
| Revenue growth rate | Are sales higher than in previous periods? | Every month or quarter |
| Customer growth | Is the number of clients increasing? | Every month |
| Customer retention | Do clients come back? | Every quarter |
| Gross margin | Does growth generate profit? | Every month or quarter |
Interpreting the figures as a whole
One indicator on its own can mislead. A Lyon consultancy might sign many new clients after la rentrée while fewer of last year's clients renew, or its turnover might rise while its margin narrows. Examine growth and quality indicators together before you decide anything.
Calculate your Growth Score
Combine these indicators into a single score and find out what to work on first.
Frequently asked questions
How frequently should I review my company's growth?
Review quick-moving figures such as turnover and new clients every month, and slower ones such as retention every quarter. Above all, keep the same periods each time.
What counts as a good growth rate?
That depends on your sector, size and stage of development. Start by comparing with your own history, then with similar companies, for example using INSEE sector data or figures from your CCI.