Why every Business should have a Business Review

Why every Business should have a Business Review

28 Oct 2018


The purpose of a mid-year business review


• Evaluate performance.
• Reallocate resources to better achieve goals.
• Make more money than you would have otherwise.
• Take stronger corrective actions than you would have without a mid-year review.
• Provide leadership for your team—too much silence taxes milestone goals.
• Offer focus for your team.

Reasons a mid-year review might be unnecessary


• Clearly meeting financial goals.
• Your team has knowledge of their duties and expectations of them for the rest of the year.
• Regular and sufficient monitoring of business performances.
• A full sales/marketing pipeline.
• Presence of all of the above.


There’s nothing quite like an abundance of cash in the checking account and a full sales and marketing pipeline to make a business owner comfortable and, consequently, ignore the need for business reviews. The goal of quality planning, however, is to prepare for the inevitable downturn while enjoying plentiful resources.

Types of business reviews and when to conduct them


While there are many different types of business reviews, these three fundamental types persist because they’re simple and effective. The following chart provides key elements for each fundamental business review, allowing you to determine which is right for your company:

Goal Review Sales & Money Review Comprehensive Review


What?  - Reviews milestone goals, action items, and new business initiatives Updates goals, customer account plans, and financial progress Reviews and updates business plan for each area of the business


Who? - Any leadership position Sales, marketing, and financial managers The management team.


Where?  - In offices In conference room Off-site


When?  - Monthly Bi-Monthly to Quarterly Mid-Year and Annual


Why?    To support goal achievement To maximize sales and profits To plan for the best year possible

Knowing how often to conduct the reviews stems from the successes your company has experienced.


• Never:  -  Unfortunately, most small firms never conduct a review of their business, even if they need it.


• Annually:  -  Conduct a review each year especially when successes remain high.


• Semi-annual:  - The best-in-class business planning processes occur in private industry when comprehensive reviews take place mid-year.


• Quarterly:  --Suggested as ideal in empirical business literature and by publicly traded companies due to quarterly SEC filing requirements, but often not practiced in smaller firms unless required by law.


• Monthly: Perform a monthly review when it seems that problems prevent goal attainment.


• Bi-Monthly: These reviews should be applied in the case of emergency situations.


• Weekly: The execution of a weekly review exists when facing bankruptcy, workouts, or the demands of obsessive-compulsive micro-managers.

 

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