Thrash Lab

Business And Personal Evaluation – How to do it?

Carrying out regular evaluations of both the business and yourself is a crucial part of ensuring that potential opportunities are maximised and that any non efficient practices are rectified.

Before discussing the specifics of any type of evaluation, it is important to express the gravity of the necessity and the alarming frequency with which the exercises do not form part of the everyday processing which occur within business operations.

Switching from being employed and starting a business often results in many changes to both one’s duties and outlook. Some of the changes may be obvious, such as where the person works or the fact that finances become their immediate responsibility. The bancos en andorra will assist the business people for the personal evaluation. The starting of the new venture will provide success and growth to the business people. There is an increase in the finance and income of the business enterprises. 

Other changes have a greater subtlety and due to the time spent adjusting to the more striking alterations in the person’s life; these less overt differences can be overlooked. Such items which fall in to this category might be some of the broader administrative activities which existed in a person’s previous employment such as appraisals, management meetings and peer discussions.

These are a form of business and personal evaluation whereby others assess individual performance and also the strategic direction of the operations. The results of these exercises may have favourable or not so, but none the less, they provided a structured platform for commentary on performance and the mechanism to change it where this was deemed necessary.

Most small businesses fail to implement such structured evaluation methods in to their operations mainly due to the lack of time and other resources. They generally choose to rely on strict financial indicators such as profit and turnover to assess and evaluation how the business is performing and therefore, in turn, how effective they are being.

The problem with such crude techniques is that they would fail to reveal many of the lost and future opportunities available to the business and would not, in themselves, provide any detailed analysis of where either profit or turnover originated.

Also in cases where the person being evaluated is responsible for carrying out the critique, many would agree that this lacks objectivity and the motivation to provide useful information.

The evaluation of both the business and the person running it must be conducted if the business is to rely on anything apart from luck to deliver the full potential benefits to the owner.

Running a small business, particular as a sole trader or single company director might restrict the available avenues to obtaining an objective and thorough report card on performance.

They are some methods which can still be called up on however. These might include trusted friends, certain family members or even Management Consultants who might be able to review and assess the effectiveness of one or more aspects.

In the case of both family and friends, proper instruction by the owner and the fact that even negative comments would in fact be most useful might lead them exercise a higher degree of objectivity when conducting their analysis.

They also certainly have the advantage of being free and low costs means of receiving feedback and comment.

Management Consultants do charge and the initial quotation might be alarming. One should remember that in almost all cases you receive what you pay for and even though the expense might be large, the value obtained from a yearly or quarterly check-up could far outweigh the charge.

A reasonable halfway approach between the potentially far from objective approach adopted by friends and family and the expense of a professional consultant might be that of joining a BNI chapter or some other group which can provide discussion, feedback and analysis both directly and indirectly to the business and owner.

By listening to others talk about their business, ideas can be gained as well as evaluated and such interactions can enable the business owner to compare their focus and direction to that of their peers.

Whichever methods or combinations of them that are adopted, it is vital that a sole proprietor have some means to receive external assessments on both their performance and direction and that which relates to businesses.

Scroll To Top