Exploring the Value of Assessments for Small Businesses
Oct 06, 2019 23:31
If you were to study a sample of 100 businesses that recently failed, you’d find that many of them had actually been in business for a number of years. They might even have experienced a string of successes over a long period of time.
But at the end of that process, they failed to adapt and improve. They became stagnant, stale, and eventually irrelevant.
Failure isn’t always preventable, but you can control some of the particulars. One of the best courses you can take is to can keep your company from falling out of touch with reality by conducting regular assessments.
What is an Assessment?
“An assessment refers to an evaluation. It is an estimate of what is going on with a certain process and whether there are new risks or benefits to be considered,” explains PinnacleArt, which works with plant managers to implement powerful reliability solutions that mitigate risk.
An assessment is not an audit, which typically results as the outcome of an inspection and requires a documented pass or fail. In contrast, an assessment entails a simple evaluation that utilizes key performance indicators (KPIs) to yield measurable feedback which your organization may use to improve.
Why Should You Conduct Business Assessments?
An assessment is like a health checkup for your firm. It uses scientific data points to evaluate how your operation is performing in key areas.
But it also provides subjective insights on how you can improve your results and sustain success. As Uhuru Network states, “A business assessment is not statistics. It will most certainly have stats as a part of it, but we are looking for a total health check … not just pulse and temperature.”
If you apply a proper business assessment, you should get a big-picture view of how your business is doing, with an up-close perspective on key aspects that could be underperforming. This will give you the opportunity to implement proactive solutions, rather than keep reacting to events that limit your options.
How to Conduct a Business Assessment
There’s no inherently right or wrong way to conduct a business assessment. Numerous strategies, frameworks, and schools of thought are available to you. Here are four of the best ones to consider.
1.Try a SWOT Analysis
If you attended business school or have any of the classic business texts ready to hand, you’re likely familiar with the SWOT analysis. This framework involves the identification of four key facets of your business: Strengths, Weaknesses, Opportunities, and Threats.
Conducting an annual SWOT analysis should assist you in zeroing in on the positive things that are happening, but also shining a useful light on the challenges your company continues to face. You can use the SWOT as an exploratory method of assessing your company operations as a whole.
2.Use the Three-Column Approach
Another business assessment model involves taking a spreadsheet and dividing it into three columns:
●Positives. What’s working well in your business? Where are you succeeding? What’s been accomplished since the last assessment?
●Reality Check. This is where you list all your business goals that haven’t been met, challenges you continue to face, and setbacks you’re currently dealing with. Try to be as objective about these as possible. This isn’t a place for justifications and excuses.
●Assessment. The final column devotes space to addressing the challenges identified in column two. It also empowers you to build on the positives collected in column one.
3.Gather Insights and Feedback
You oughtn’t to conduct an assessment in isolation. It’s helpful to gather your most respected team members and give them an opportunity to provide feedback.
This is more likely to result in a well-rounded sense of the entire picture. It will expose items you may not have been aware of, but it could also validate some of your observations and opinions.
4.Develop an Implementation Plan
A completed assessment without any action to follow up is nothing more than an exercise in wasting time. You need to implement steps that will overcome your challenges and take advantage of perceived opportunities.
Here again, including key team members in the process will help to produce meaningful results. As a part of your implementation plan, be sure to set goals and KPIs that enable you to measure the results. Otherwise, you won’t have a clear picture of how you’re doing.
Putting it All Together
There are a variety of ways to conduct a business assessment. You can be as superficial or detailed as you like.
You can conduct an assessment every quarter, once a year, or even less often than annually. It will ultimately be your decision when and how you assess your business operations, but it should be often enough to ensure you stay on top of performance.
If it’s not, you will inevitably fall behind and are sure to miss out on opportunities for growth.
There is no secret that the world is becoming more practical day by day, and the digitalized world is becoming our future. All businesses have shifted from traditional marketing to digital ones as the quality is much better, and of course, it is a much cost-effective technique. Along with a variety of digital marketing techniques such as content marketing, SEO, email marketing, and press release distribution services, it is one of the most effective and efficient ones. The question must be arising in your mind is, why go for press release distribution services (PRDS)? Well, let us discuss the significance of PRDS for your businesses. Read more
The term ‘community development’ is associated with a variety of different meanings. For some people, community development is the strengthening of the economy. Others think community development is all about providing people with top-quality academic opportunities. While some believe community, development encircles the concept of spiritual rejuvenation or building social capital. Read more
The celebration of occasions is the best part of our life. These are the best moments of our life that provides oxygen in a monotonous life. The celebration of occasions has a beautiful essence of relationship with our beloved ones. And this bond gets stronger with the specific gifts for occasions. Now, different countries have different courtesies and etiquettes of gifts. Some gifts are associated with culture; some are associated with the climates. But, if you are looking for varieties, then it is best to search in the European countries. Here is a list of perfect online gifts for European countries. Read more