Kickstart Your Success: Why Small Business Owners Need a Yearly Business Checkup

While it's tempting to dive right into setting goals and making resolutions, there's a crucial first step that often gets overlooked: a thorough review.

This is real. Balancing life and business and people. I've been there too. I made some mistakes and yes, lessons learned. Looking back, it wasn't that I set out to torture myself. I just didn't know what questions to ask, or to who. I meant to do an annual review and keep on my business plan, but I was so busy working in my business and trying to balance life. I had a great support team. I was asking questions and getting well meant advice, but in hindsight it did not apply to my situation. I'm not alone. Having worked with 100's of entrepreneurs globally, I have heard this same story so many times over. We are always learning.

The skill of business analysis and looking at your big picture helps you to ask the right questions and set yourself up for success. Even if it's not your strongest or most enjoyed business activity - ie. financials. Knowing what you don't know is the start of a better business.

I wrote an article in July about Avoiding Self-Sabotage: The Power of Identifying Blind spots for Small Businesses . As follow up, this is your annual reminder to check in with yourself and why.

Read to the end for suggestions on how to get started.

Here's why small business owners should prioritize this step and start today:

1. Assess Your Current Situation:

A business evaluation helps you gain a clear and honest understanding of where your company stands. You can analyze financial performance, operational efficiency, customer satisfaction, and more. This snapshot of your current situation is invaluable for setting realistic goals for the upcoming year.

It's a realtime inventory of all that is. Good, bad and ugly or your current reality.

2. Identify Strengths and Weaknesses:

By evaluating your business, you can pinpoint your strengths and weaknesses. Knowing what you excel at and where improvements are needed allows you to make informed decisions on how to grow and improve in the coming year.

Priortize your to do list and delegation.

3. Set Informed Goals:

Starting your yearly planning with an evaluation allows you to set more informed and achievable goals. You'll avoid setting unrealistic targets and will have a better understanding of the resources and strategies required to reach your objectives.

Write them down. Get an accountability partner to help you stay on track.

4. Adapt to Market Changes:

The business landscape is ever-evolving, and what worked last year might not work in the next. By evaluating your business, you can identify areas that require adaptation to stay competitive and relevant in the market.

Remain a learner.

5. Allocate Resources Wisely:

An evaluation helps you allocate your resources more effectively. You can identify areas where you're overinvesting or underinvesting and make necessary adjustments to optimize your spending.

Cashflow management is key, don't take your eye off the money and know what story it's telling you.

6. Improve Decision-Making:

Data-driven decisions are often more successful. A thorough evaluation provides valuable data and insights, making it easier to make informed decisions that benefit your business.

Reduce reactive decisions. Plan everything out to your best advantage.

7. Enhance Employee Engagement:

Involving your team in the evaluation process fosters a sense of ownership and engagement. Employees can provide valuable input and feel more connected to the company's mission and goals.

Build leaders within. A strong culture is nutured to be so.

8. Benchmark Progress:

Evaluations serve as a baseline for future comparisons. By regularly assessing your business, you can track your progress, celebrate achievements, and make timely adjustments as necessary.

Rate your own health. What does your balanced score card look like?

9. Stay Competitive:

To thrive in today's competitive business environment, continuous improvement is crucial. Regular business evaluations ensure that you're staying on the cutting edge and positioning yourself ahead of the competition.

With a plan and momentum, growth and sustainability are necessary conversations.

10. Build a Strong Foundation:

A yearly business evaluation is like a health check for your company. It helps you maintain a strong foundation, adapt to change, and prepare for future challenges.

It also records a snapshot of the overall health of the business including annual goals.

Can you relate to even one of the above as a clarity you wish you had yesterday?

Starting your yearly planning with a business evaluation is not just a good idea—it's a strategic necessity for small business owners.

Set the stage for a successful year by identify strengths, weaknesses, opportunities, and threats while allowing for data-driven decision-making and resource allocation.

Why wait? Start your business evaluation today and lay the groundwork for a prosperous year ahead.

It doesn't have to be fancy or expensive.

I'd suggest you find a template, google a checklist of sorts, make it your own. Keywords of interest may include: Business Model Canvas, SWOT Analysis, Balanced Score Card, Strategic Plan, or ask Chat GPT for some insight.

Be clear about what do you want to track. What needs does the business have? What needs do you have?

Test yourself- How would you rate your overall business health? Download your FREE self-assessment template. This is a checklist of questions that I use to help assess buinsesses, identify gaps and establish high level plans to priortize activties for growth or tranistion. Go through it for yourself. Download your copy. It will make you think about your business for a few minutes.

Any suprises? Be sure to change it up and make it your own.

You know your business better than anyone else. What are your Key Performance Indicators? How do you know you are successful?

No more bandaids. Hire the right support for the right problem. Start with a coach or advisor that will help you strengthen this strategic skill.

A yearly checkup should be a non-negotiable, schedule some time to start yours.