When business owners have had a level of business success it is easy to become complacent. Rarely do small business stop to analyze their business performance. I want to emphasize that if you would take the time to do an in-depth annual business review you will find that there are things that you are doing that are not yielding notable profits.
If you are new to performing an annual business review here are 7 action steps that want to take.
1) Review your financials – run a annual profit and loss and assess how your dollars were spent
2) Breakdown each product or service you offer – assess what profit you earned from each product or service that you delivered. This should be itemized on your Quickbooks or whatever accounting software your bookkeeper uses
3) Examine what it takes to deliver that offer – evaluate the manpower it takes per individual deliverable
4) Where are you concentrating most your efforts – appraise the time it takes for each deliverable you offer. Time is money and you want to be clear as to what costs to provide each product or service
5) What does it cost per deliverable item/service – assess cost per item by evaluating cost to you, manpower time, shelf time, marketing expenses all the way to delivery of item/service
6) Where are you allocating most of your marketing budget – lastly you want to calculate if you are spending enough of your budget on marketing if each place you are marketing is producing an adequate return. The ROI in marketing is essential to thriving revenue
7) List what updates, changes, and improvements will you make in 2016; from this review
You want to do this annual business review as a panoramic impression of your business’ successes and deficiencies. The more input you gather from reports, employees, outsource teams, and vendors the better your perspective on your business. Information is power!
Annual business reviews equip you with all of the information needed to make intelligent based decisions about your next moves. An annual business review is inherent to grasping the pulse of your business and realizing extraordinary accomplishments.