Is Success Only Measured By Profits?

Profits may be the most popular metric of measuring the success of a business venture but it is by no means the only (or the best) method for measuring success. Most start-ups are not profitable at the beginning of operation and many are not profitable for years. While monetizing a business is an important goal there are other important metrics that can be used to judge the performance of the company beyond the simple bottom line.

Social Responsibility – The impact a company has on society as a whole may warrant its existence even if it does not make a profit. This is why non-profit organizations exist and why they are able to source funding for their missions. Even businesses that operate for profit may have such a positive environmental or social impact that the level of profits alone cannot fully measure their success. Take for example a utility company that invests heavily in renewable energy and experiences losses in two years following that investment.