“Without knowledge and understanding of the past, we are doomed to repeat it.”
Creating a sound business plan has been labeled one of the most important steps to developing a successful entrepreneurial business. Entrepreneurs may spend countless hours creating a business plan that meets every possible issue. The problem that some business owners have is that one that plan is in place, the work stops. A good business plan should be reviewed and revamped at the end of each year of business.
Using a Year End Review to Build Success
Start with the money – an entrepreneur needs to look at all of the expenses for the year and determine the value of those expenses. Unseen leaks can be uncovered and plugged before they cause irreparable damage to the business. Taking a few hours to review the financial health of the business plan can give the entrepreneur the right insight to drive the business on to success.
Look at the employees – to build a successful business the entrepreneur needs to know what (and who) has worked and those that have not worked. An Entrepreneur can move towards streamlining a business by understanding the job descriptions and tasks that are no longer relevant for the pursuit of success. Seeing the potential for new jobs or needs prepares the entrepreneur to take on the future.
Review the market – twelve months can be a long time for the entrepreneur. Customers change, the needs change and the economy can slip into a hole that NO ONE saw coming (or wanted to admit). The year-end review provides the entrepreneur with the flexibility to adjust and change according to the future markets.
Evaluate growth and education – look at the conferences and classes that were attended. Put a value on each event – include contacts made, information gleaned, and other assets that were gathered. Let this set the pattern for future attendance (or it may even ignite the desire to host an event).
Many entrepreneurs think of the year-end review as a tool for evaluating employees. Although this can help individuals learn and grow, the year-end review can be equally valuable for the business as a whole.
Entrepreneurs need to take to the time to see what worked in the business. Finding the things that did not work will serve to help the entrepreneur further streamline the business. Locating the better way to do things will provide the entrepreneur with the tools for success.
Knowing the past will help the entrepreneur prepare for a stronger and more successful future. Implementing a year-end review for the business as a whole can be one of the most valuable assets the entrepreneur can have for that business.