If you have been in business for a few years now it important to access the performance of your business entity and evaluate the direction of where its going. While most small businesses might set goals, few seldom actually take the time to develop or review the year gone by. Most business owners will have an idea of the events around the previous year but do not really spend time evaluating the events around the business.
What are the benefits of the business review?
- To access the economic climate and understand the impact of profit or loss
- To enhance and update the original business plan
- To gauge the success or failure meter
- To prevent business uncertainty or having any false premonitions of your business assessment
- To control the direction of your business
- To create a list of action plans and an agenda of goals to implement
- To set accountabilities across your company channels
Now while we understand how a business review will help grow your business most people still try to figure out the key elements to a business review.
The elements to a business review
The business review starts will contain a full size document with a table of contents highlighting different sections of the review. Here are the following elements that comprise of a business review.
- The different sections that make your business entity
- The key roles and responsibilities of each sector
- The growth cycle and retention statistics of the people that work for you
- The core metrics of performance for each sector
- The overall profit and loss margins of each sector
- The business numbers and analytics
- Key metrics to your business cycle
- The results of the previous year
- The business goals and objectives for the new year
- The business and marketing calendar
- A comparison of annual performance 3-5 years
- Overall business projections for the following year
- An action agenda
Did you evaluate your business in 2012? Was a formal business review and assessment created? What were the major focal points of attention given to it?