Why It’s a Good Idea to Carry Out an Annual Business Review
It’s a good idea to carry out a business review whenever you feel as though you need to take a step back and reassess your work, goals and priorities. I would recommend carrying out a business review at least once a year, but it can make sense to do it more often, especially when you find that your professional or personal circumstances have changed.
So what does an annual business review actually consist of? It involves looking at the past 12 months and asking yourself how it’s gone for you and your business. Did you meet your goals? Did your work leave you feeling satisfied? And are you happy with the direction your business is heading in? Once you’ve monitored your business performance and assessed your results, you can create solutions to problems you’ve identified and reset your intentions for the future.
Many freelancers I’ve spoken to often fail to carry out an annual business review. This is usually due to a lack of time, feeling overwhelmed or simply not knowing where to start. In this post, I’ll be looking at some of the reasons why you should make carrying out a review of your business at least once a year a priority.
Reasons why you should carry out a yearly business review
1) An annual business review allows you to assess the current situation
When you carry out a business review, it enables you to analyse how the last 12 months have gone. If you’re like many freelancers rushing from one task to the next, you’ll probably find that sitting down and assessing the big picture is a far less frequent occurrence than you’d like it to be. However, doing this is essential if you want to identify what you need to change moving forwards. It’s only by carrying out an honest review that you can keep your business on track and make sure it’s growing the way you want it to.
2) It gives you the opportunity to reassess your priorities
What mattered to you last year might not be the same as what matters to you this year. Circumstances change, life takes a different path, and you might find yourself with a whole new set of priorities. Perhaps you need to spend less time working due to family commitments, or maybe you’ve diversified and have found a new line of work you’d like to focus on more.
Either way, an annual business review gives you the chance to really ask yourself what you value most and what your priorities are for the future. Once you have a clear idea in your head, you can go about realigning your goals and aspirations to fit.
3) A business review provides you with the tools to create a plan
To create a plan that targets your goals, you need to know exactly what those goals are and how to reach them. Not only does a business review allow you to identify your objectives, it provides you with the data necessary to set you on the right path in order to achieve them. For example, if your goal for the next 12 months is to increase your revenue, you can look at which clients brought you your highest hourly income over the last 12 months. Could this give you an indication of the type of clients you want to be targeting with your marketing moving forwards?
In Charge with Confidence, I teach you how to calculate your hourly income and what you need to be charging your clients to achieve your financial goals.
4) A review is a great source of information to share with other members of your team
When you review your business, you set new goals and identify what you want to do differently in the future. Sharing these outcomes with other members of your team or those you work with frequently can be really valuable. A business review provides you with something concrete to communicate so that other people know what they’re working towards too. Not only does this enable them to align with your goals, it also contributes to making them feel more inspired in the work you do together. It’s a win-win!
5) It just makes you feel better!
Getting organised and clearing out clutter, whether it’s physical or on your computer, gives you headspace (just ask Marie Kondo!). There are lots of psychological benefits to carrying out the equivalent of a spring clean for your business. Many freelancers report enhanced productivity, while others say that the extra headspace encourages their creativity, making room for new business ideas.
6) A business review can make you more productive
Not only can a business review improve your productivity thanks to clear goals and a lack of psychological clutter, it can also make you more productive because it forces you to get at least some of your admin in order. Over the course of the year, it can be easy to misplace files, lose track of your invoices or forget to archive documents. I’m not saying that a business review will solve all your admin issues, but it will make you gather the most important information in one place so you can analyse it.
Getting your admin in order will make you feel more in control and will help you streamline your processes in the long term. Next year, you’ll know where and how you want to file your documents to save you time when searching for those you might need in the future.
7) It’s the first step to consistent business growth
Unless you carry out a yearly business review, the likelihood is that you’ll end up finding yourself in a rut. If you want your business to continue to grow year after year, you need to establish actionable steps to achieve your goals. And to identify your goals, you have to assess what’s important to you.
Knowing what you want from your business and what you have to do to get it is the first step towards consistent business growth and, ultimately, a sustainable business that will bring you personal satisfaction. At the end of the day, that’s why we do what we do!
8) A business review reminds you of your achievements
It’s always good to celebrate the wins, whether they’re big or small! As freelancers and small business owners, we’re often so busy moving on to the next thing on our to-do lists that we forget to celebrate what we’ve achieved. It’s important to check in on past goals and aspirations, and appreciate the progress you’ve made over the last 12 months. I bet you’ve achieved more than you think!
I’m sure there are lots more reasons for carrying out an annual business review besides the ones I’ve mentioned here. Do let me know of any others that spring to mind!
In the meantime, if you’d like to carry out a business review but never seem to find the time, at the end of the year, I’ll be organising a Reflect and Reset Challenge. The aim of the challenge will be to encourage you to use what you’ve learnt this year to think about what you want from your business next year and achieve your goals.
All you have to do to get on the waiting list is register your interest by clicking on the button below. I can assure you that having a clear vision, achievable goals and actionable steps will help you start the new year feeling positive and empowered!