APPRAISAL

How to Evaluate Your Business Performance

Taking stock of your business performance

In Summary

•Whatever is revealed in the business evaluation process isn’t considered a personal attack

•This analysis is what you need to take your business performance to the next level.

It is vital for entrepreneurs to acquire the skills to objectively evaluate their business. This starts with a change in perspective. To properly evaluate your business performance, you must develop a growth mindset. This mindset sees every aspect of business as an opportunity to grow. So, whatever is revealed in the business evaluation process isn’t considered a personal attack – the evaluation process is seen as good for the business. Hence, done properly. With this mindset in place, here are four questions to help you evaluate your business performance.

What Was Our Goal? When you made your business plans for the year, what was your goal? Are you clear about what you set out to achieve? Did your goal change along the way due to unforeseen circumstances? If yes, did you adjust or abort your plans? Here, clarity is vital. You start to evaluate your business performance by what you set out to do. 

Did We Hit Our Goal? Now that you’re clear on your goal, did you achieve it? Are you clear on the performance indicators that show you’ve achieved your goals? What does success look like? And here, near hit does not count. Often, entrepreneurs have a challenge calling an outcome what it really is in the bid to be ‘positive.’ You either achieved your goal or not. Tell yourself the truth.

Why Did We Hit or Miss Our Goal? If you missed your goal, why? What went wrong? What went right late? What are the weak links in your business operations? Are your business systems in order? In this process, keep questioning your answers until you get to the root cause of the problem. Find out why things didn’t work.

If you hit your goal, why? What did you do right? What changes worked? What mind shift occurred for you to see and appreciate your new approach? It’s important to evaluate why you’re getting results so that you’re able to make it part of your success system.

What Should We Start, Stop, or Continue Doing? At this point, you’ve gathered valuable information so that it’s easy to properly see through the intricacies of your business. Based on your analysis so far, what should you start doing that would be beneficial to your business? What business practices should stop for your business to grow? And what have you been doing right that must continue? The result of this analysis is what you need to take your business performance to the next level.

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