Important Aspects of Your Business to Reassess Annually

Successful businesses are rarely static. The world is constantly changing, and companies have to find ways to adapt in order to thrive. Successful entrepreneurs frequently seek insights into what does or doesn’t work and are open to making improvements to their operations. Agility is key to staying competitive.   

It’s not always clear how you should go about this, though. You don’t want to run the risk of being the kind of neurotic micromanager that is always over-examining processes. It’s important to strike a balance that allows you to be vigilant while giving your business space to breathe and grow. One way to approach this is by committing to annual assessments of specific aspects of your company. 

Every business is different. There will be niche areas to prioritize depending on your industry and size. That said, there are also points of focus that are essential for all business owners to assess on a yearly basis. We’re going to take a look at a few of these, why they're important, and what to look out for.

Safety

One of the key responsibilities every business owner has is safety. It’s important to note that this is a relatively broad area, covering issues that affect staff, consumers and clients, as well as the general public. Not only does attention to safety mitigate the potential for problems, but it boosts your reputation for customer consideration. It can be easy to overlook the ways in which your business operations both present and are subject to safety issues, so you shouldn’t overlook assessing this on a yearly basis. 

Our current crisis is shining quite a stark light on safety in the workplace. Until this year, few of us would have considered the possibility that our workplaces would need distance and sanitation procedures in order to be safe for staff and in-person customers. Which is why it’s important to think carefully about your disaster preparedness plans.

Don’t just focus on the obvious emergencies such as earthquakes or fire. Look around and ask yourself whether your workplace can be adapted to create safe distances. Are staff being trained in basic cleanliness standards, and maintaining them?

Aside from physical safety, we also have risks arising from operating in a digital age. The technology we use is frequently changing, and criminals are increasingly creative in their approaches. As a result, you can’t afford to be complacent about cybersecurity.

If you take mobile payments, take the time to regularly review the protections provided by the apps and services you use to facilitate this. Check with providers to ensure that encryptions are up to date. Make sure that Wi-Fi networks that payment devices and company accounts are connected to are secure. Don’t operate on the same public networks you might offer to visitors.

Finances

This is rarely a fun area to look into. Even if you enjoy dealing with numbers, the minutiae of your finances is probably not the part of your business you’re most passionate about! That said, while you might well be abreast of your balance sheet, you also need to spend time annually examining the underlying infrastructure of your financial situation. Those elements that support financial operations can not only keep your profit margins healthy but can also help you out of sticky situations should they arise.  

So, let’s talk about bookkeeping first. This is in essence a matter of handling data in the most effective way possible. Finding the right bookkeeping method to suit your business can help you make timely management decisions, keep on top of your tax obligations, and attract investment.

Take annual stock of how your bookkeeping approach is helping or hindering the function of your business. Are you using software that saves you time? Could investment in an on-staff bookkeeper free your time to focus on more profitable areas? Especially if your business is experiencing growth, you have to be aware of whether your approach to your accounts is still relevant and effective.  

None of us enjoy taking on more debt. However, any business ambition you have will require capital. Annually taking stock of your credit score allows you to make better decisions about whether loans are a viable option for your projects.

It’s not unusual to have a poor credit score, and the good news is that it is repairable. When assessing your score, look at whether there are negative items you can realistically pay to delete, or even creditors to whom you can write a goodwill letter. If you have paid down debt and it’s still affecting your score, make sure to dispute the error.

Staff

Whether you have just a couple of trusted part-time workers or a large team, your staff need to feature in your annual reassessment. You’re probably already including them as part of your financial planning — can you afford to keep employing them, are you able to take on additional help? But there are other areas that may benefit from you taking a close look at your employment approach. 

As your business develops, you have to make certain that your staff maintains the skills to match. Therefore it’s important to review your approach to training. Paying salaries shouldn’t be the only investment you make in your staff — give them opportunities to develop abilities that can help them to be not just competent, but innovative. This also sends a signal to your staff. A study showed that providing training to staff boosts their satisfaction, and results in increased loyalty. 

For similar reasons, it’s important to assess the culture of your business. Review the values of your business, and how these are reflected through your interactions with staff. You don’t necessarily need to implement an expensive rewards system or bonuses. However, you should examine how your strategies and structure affects their work/life balance.

Can you introduce aspects such as remote operations to improve flexibility? Are there businesses you could partner with to provide counseling at stressful times? Your commitment to staff wellbeing has a virtuous cycle. Your current staff will spread the word, the quality of candidates for future roles will improve, which in turn impacts your business positively.

Conclusion

We all want our businesses to be successful. Part of the key to this is scheduling time to look at how we can improve operations. On a yearly basis, ensure you reassess your approach to safety, financial infrastructure, and your staff. You’re not always going to get everything right, but being open to change in these areas can give you a good grounding.