On a scale of 1-10*, how happy are you with consistently reaching your business goals?
*1 = lowest, 10 = highest
More importantly, do you know what to change to improve your results by 1-2 points in the next 90 days?
You can choose at any time to do things differently and start hitting your goals for the quarter. You’ll achieve this through doing a business review which will give you clarity, help you with planning and then it’s about taking daily prioritised action.
A Business Review is super important because it:
- Gives You Control + Peace of Mind
A large percentage of business owners don’t have a clear picture of how well their business performs at any given time. What you don’t know about your business is a blind spot that keeps you from reaching your goals.
A business review look at the facts and will show you the level of efficiency the business is performing at and if you need to make any adjustments to reach your goals.
- Helps You to Work ON Your Business
We all get caught up in the day-to-day running of a business and that’s why you need a chance to lift your head, reconnect with your vision and see the bigger picture. It’s like zooming out on a Google Earth map.
Zooming out will give you a helicopter view of where you’re at, if you’re moving in the right direction + how far you have to go. Small tweaks on a consistent basis in all business areas are the key to success.
The aim of a business review is to perform a health check and take your business’ pulse as it is, right now.
BUSINESS AUDIT + VISION REVIEW
The first section of the review is about assessing your current situation, looking at your vision and deciding how you’ll get there.
Questions To Consider:
- What’s your 3-year business vision?
- What is your definition of success?
- What are your 3-5 main main goals for this year?
- What worked well for you over the last 6 months?
- What needs to be improved?
- What resources do you need to succeed? (staff, training, systems, equipment, cash flow)
MARKETS + PRODUCTS REVIEW
In this part of the review you’ll look at who you serve, what you offer and how profitable your products/ services are. Then you’ll look at how to improve your results over the next quarter.
Your marketing plan will outline your target markets, positioning, customer demographics, message, offering, marketing strategy + tactics.
Over the years, I’ve found very few business owners who have any marketing plan whatsoever and it’s key to your success.
Without a plan, you’re bound to fall prey to the bright shiny object syndrome, waste money on strategies that won’t work for your business and make other marketing mistakes.
- How effectively are you matching your products/ services to your customer’s needs?
- How effective is your marketing? (leads coming in + conversion rates)
- List your best performing products/ services – what percentage of revenue are they responsible for?
- Can low performing products/ services be improved or phased out?
- Products/ services costs – direct costs, overheads, brainstorm ideas to lower costs, negotiate better deals with suppliers
MONEY/ FINANCIAL REVIEW
If you’re using accounting software like Xero, MYOB, Cashbook Complete or Quickbooks all your financial reports are in one place and it’s easy to print out or view them online. Or contact your bookkeeper for up-to-date information.
Business Numbers To Review:
- Targets vs Actual Revenue generated
- Costs/ Expenses – keep costs under constant review
- Cash Flow
- Borrowing – credit available, loans
- Growth/ Investments
BUSINESS OPERATIONS REVIEW
Operating your business in a short-term reactive way costs you time and money in the longer run and isn’t sustainable when growing the business. A clear strategy will guide you in your overall decision making process and help you avoid costly mistakes.
- In which areas of your business do you use computerised systems to be more efficient?
(cloud applications for storage, remote back-ups, to work from anywhere + increase productivity)
- How do you manage repetitive tasks in the business?
- Is your marketing + sales process documented?
If not, start the documentation process through outsourcing or record the process on your phone and send the audio file to be transcribed.
Continue to add instructions to the document every time you do the task, even if it’s one sentence at a time.
- Do you have the right team (management, staff, suppliers, outside consultants) in place to achieve your goals?
- Do you personally have the skills you need to succeed e.g. leadership, sales, IT, HR?
- Are you clear on which tasks to delegate and outsource?
- Which tasks are most time consuming?
- Which tasks generate the highest income?
- What are the lowest income generating (but necessary) tasks in your business?
- How productive are you (working only on high level activities) vs busy (working on tasks you’re not good at or where you can hire someone at $20 p/h to do the task)?
Success is a few simple disciplines practiced every day;
while failure is simply a few errors in judgment, repeated every day.
~ JIM ROHN
Which area of your business will you focus on most in the next quarter? Leave your comment below.
Author: ALICIA MENKVELD Creator of: BUSINESS CONFIDENCE ACADEMY Alicia Menkveld is an award-winning entrepreneur for the last 17 years who loves to travel and lived on three continents to date. She is an international speaker, author and a trusted adviser to small business owners and leaders. Alicia is an authority on business strategy, mindset and productivity for individuals and teams. Streamline your business to support your lifestyle.