This could be any of the following:
- Number of completed jobs at a certain value
- Meeting gross profit targets
- Customer satisfaction score
- Overall net profitability of the business
- Employee retention
- Cash in bank after meeting current expenses
- Improvement in balance sheet ratio
These are simple scores that solid businesses keep track of regularly. On top of this, a quick review process should be completed so that you can finalise in your mind how the business performed and look at setting up the following calendar year for success.
Below is a simple process that you can follow:
Triple R (Review, Reflect, Respond)
Review – Ask the following three questions:
What worked/ what wins did we have? – Look at all the areas of the business where you made progress, achieved certain outcomes or succeeded in fulfilling initial goals.
What was missing/did not work? – Have a look at all the areas that caused you challenges, frustrations, or major inconveniences and, what was missing, that if it was present, would have made a difference.
If you could rewind the year, knowing what you now know, what would you do differently? – Hindsight is a wonderful thing and if you take on your learning throughout the year, mentally apply it to your business, it has you positioned to take advantage of your future situation.
How did you perform as a business owner? How was your leadership? In all the roles that you play, how would you rate your performance? What opportunities do you have for improvement moving forward?
Looking forward into the new year, how will you apply your learnings to take a new or different action and ensure that your business is in an even better position in 12 months’ time.
Applying the above is the difference between running a business by default or running it by design. Default is where you have a break at Christmas, kick-off into the new year and simply replay the same year you have just had. Design is whereby you learn from the year and apply your learnings and increased awareness to the future and design an even better outcome.