9 Ways to Know Your Business Needs an Assessment
We often talk about how to start a business but we don’t ever really speak about what it’s like to be in business and the struggles companies can come up against.
How do I grow my business, how to shift gears, am I missing opportunities, how come my business plateaued?
We always like to say that a business is a living, breathing, and hopefully growing thing. It’s constantly changing as are you and just like you the needs as a business develops can change.
This is why it’s recommended to get a business assessment. Irina Volfson, is a serial entrepreneur, a master strategist, and merchandise creator with countless businesses under her belt was kind enough to put together these 9 questions to ask yourself if you’re wondering if a business assessment might be something you need.
We had a more in-depth chat with Irina during our interview on the So She Slays podcast which is at the bottom of the article. There we talk about the top mistakes you’re making in your business and what a business assessment will tell you.
How to know if your business needs an assessment.
1. When is the last time I had an external assessment that provided me with gaps, tweaks, and opportunities for growth?
2. What percentage are we profiting annually?
3. Do we have solid processes
that improve efficiency and save time?
4. Are we spending our finances wisely?
5. Are our marketing efforts connecting us to our ideal clients?
6. Do we have the right organizational structure for our business?
7. Are we going by a 3, 5, or 10-year growth plan?
8. Are we implementing new products and services based on customers’ needs/wants?
9. How long do employees normally stick around? Does our company culture provide a safe place?
Wondering how your answers check out? check out the answer key below:
If you never had an assessment and you've been operating for 3 years or more, you're due for one. To ensure the most sound strategy and performance, companies should do 2-4 assessments per year.
A general benchmark for a good profit percentage is about 15%. Anything less should be evaluated. If you don't know what percentage growth you're experiencing, that's another reason you need one.
If you're spending more time researching than developing or selling, for example, it's a big red flag. Sales are your #1 in most industries. Having proper processes and systems in place is your guiding light to sustainable success.
Financials should be reviewed on an ongoing basis, but at least 2-4x annually. A review of financials can show you what you may be missing in parts of your business.
Knowing your customer and connecting with that customer are keys to success. If you're not reaching your ideal clients, they often feel like you're speaking a different language when you do reach out and this may be a sign your messaging is off.
Operating a new company comes with its growing pains when oftentimes you "wear many hats." However, certain responsibilities should be designated. The best way to know is if goals are being reached. But if roles don't have their own purpose, you may be due for a check-up.
Having a growth plan to go by systemizes your processes, efficiency, and performance. Starting out you can always start small but having a future goal/vision builds a foundation for your assessments. Don't have one? It's time to assess the possibilities.
In an ever changing market like ours, it has never been more important to stay ahead of the curve. Sometimes listening to your customers helps with the development of additional beneficial products and services. But if you are not keeping an open mind to this discovery or don't know where to start, it's a sign that an assessment can open these doors.
Having a sound company culture excites employees to work hard and produce their best work, even if they are outsourced or working remotely. However, if you find that you are spending time on onboarding every few months, you're due for a culture check and an assessment can guide your next steps.
Get more insight into how your business should develop as it grows by listening to our whole interview with Irina Volfson.