Weekly Eyes on Your Business

By Christina Suter on Oct 06, 2018 at 10:17 AM in Business Issues
Weekly Eyes on Your Business

Last month I discussed the components of your business that you should keep your eyes on weekly and monthly. This post is about the aspects of your business that need your attention and evaluation on a yearly basis. When you choose to work on your business you feel in control instead of your business controlling you. 

The 5 elements of a yearly company review:

1. Profit and Loss Statement (P&L)- Take a look at your pricing, marketing, staffing, and direction. Should you change direction based on what your monthly statements have shown you; did you earn money, did you pay yourself, is there enough money left for bonuses? What were your five largest categories (rent, payroll, etc.) and do they need to change? 

Look at your P&L statements from the last three years and see what the seasonality of your business, the seasons where you earn a lot of money and months where your business makes the least amount of money. Long-term trends and top line items are yearly essentials to review.

2. Pricing- changes that have occurred in the cost of goods, cost of labor, and/or the time it takes to deliver your goods. What's the price range and changes in your market and industry? What does your cost structure drive you toward needing to charge? 

3. Marketing- Is each channel you're using, working? What channels have the highest conversion? What social media are you active on and which ones do you get feedback, followers, or can look at the analytics from?

4. Staffing- Staffing sometimes balloons, so reviewing this element is imperative. Are the number of people you pay and the jobs they're performing working for your company? Do you need to bring on more staff? 

5. Vision- Has the vision for your business changed? Have you learned what you set out to learn? Have you moved on or learned the lesson you needed to learn? Is it time to change your mission statement.