Entrepreneurs should adopt the act of evaluating the performance of their businesses frequently in order to ascertain the level of growth and identify the areas where improvement is required. The SWOT analysis can be useful at any stage of business to identify strengths, weaknesses, opportunities and threats. The business owner can always try once in a while to check the milestone he/she has achieved, the customers the business has been able to amass and retain, and the revenue it has accrued over time – this is called evaluation. The entrepreneur can also carry out evaluation of:
- Cost and Revenue
The entrepreneur should have depth knowledge of how cost and revenue relate in business. He/she must always be in a position to always break even quicker and make profits.
- Customer Satisfaction
Customers satisfaction is the best way of sustaining a business, a business cannot retain a dissatisfied customer. Therefore, it is very important for an entrepreneur to often measure how satisfied his/her customers are.
- Employee Satisfaction
Your employees are partners in progress and must be satisfied and motivated to work towards achieving goals at all times. Career prospect, incentives and training opportunities are part of the things that enhance employee satisfaction.
- Goals Achieved
Evaluating how successful a business is when it comes to achieving its set goals within a specific period of time reveals a lot about its growth.
- Gain in Market Share
If a business can work on increasing its market share in the industry within which it operates, there is a possibility that it can lead the industry. In Jeff Bezzos words, he said “market leadership can translate directly to higher revenue, higher profitability, greater capital velocity, and correspondingly stronger returns on invested capital”.
- Measuring Competitive Advantage
A business should be ready with strategies and innovation that will enable it to compete effectively. Competitive advantage can also be evaluated always in order to avoid failure or loss of market share.
This article was written by Sule Muhammed Lawwal