What are the best ways for entrepreneurs to evaluate their own performance?

Did it bring value to your target industry, your team and finally yourself? If the solution, service or product you've set out to offer has helped to improve or even solve a problem for your target audience/clients and its community, then that's a good gauge of whether you've brought value. If the team that worked on it benefited in any number of ways, be it through acquiring more skills and know-how or even financially, then as a leader, you've brought value to and furnished the needs of your team. Finally, if what you do brings you fulfilment that goes beyond the monetary and inspires you to continue doing it everyday, then yes, that's a good gauge that your entrepreneurship brings value and is meaningful to yourself as an individual.

As an entrepreneur, you have to build a feedback network to make your idea come to life. Having both mentors and peers to seek feedback is crucial. You have to network with others who have goals and accomplishments that you have and want to achieve. Meet peers who are seeking to obtain a similar goal to level up your progress. Join forces where you can to validate assumptions. Seek mentors who are willing to teach you from their own failures and successes so that you have deeper insight into your own performance. Consistently seek constructive feedback, as it’s the only way you will grow.

Track key metrics like sales, profits and customer happiness over time. Get feedback from your team, customers and mentors. Above all, constantly push yourself to learn from both successes and failures.

When setting targets discuss with each of the team if they are achievable or not. Maybe they are to low and amend where necessary

These measurable metrics, spanning revenue, profit, customer satisfaction, and more, help monitor your progress and identify trends. However, it's crucial not to solely rely on KPIs, as they may not capture the full scope of your performance, including aspects like quality and impact. Balancing KPIs with a holistic assessment provides a more comprehensive view of your business's effectiveness.

Entrepreneurs can elevate self-evaluation by adopting Objectives and Key Results (OKRs). Define ambitious yet achievable objectives and measurable key results to gauge success. OKRs align teams with a shared purpose, fostering collaboration and accountability. An organization's harmonized OKRs propel unified efforts towards overarching goals, ensuring every sub-objective contributes to the larger vision. This structured approach assesses individual performance and steers the entire business toward continuous improvement and success.

Honestly, if you're all about the MRR and ARR, then you're missing the big picture. The successful clients that I deal with turn off their phones on the weekend and look at the other aspects of life.

Remember that as an entrepreneur, your well-being impacts your work. Make sure to carve out time for self-care, hobbies and relationships to stay balanced and at your best.