A business evaluation can provide you with valuable insight as to how your business is making money and how you’re spending it. Taking a closer look at your finances can reveal things you never knew about your company’s finances, and where you need to plug potential holes in your expenses.
Here are 5 things you should evaluate when performing your business evaluation.
Business Evaluation Component #1: Employee Performance
Labor is probably the biggest expense for your business, and if your employees aren’t measuring up to certain standards, you’re throwing away your money. As business owners, we set standards to ensure that we’re paying employees fair wages, based on what they can do and how well they perform in their areas of expertise. If employees aren’t measuring up, it’s time to take a look at how this really impacts your finances.
Let’s say you’re paying someone $50,000 per year for a high-level job that requires a lot of work. This employee has continuously failed to meet goals throughout the year, causing other employees to have to pick up the slack and help do their job. Not only is this detrimental to the cost of keeping this employee on the payroll, but it can cause serious frustration and extra work for other employees.
If someone on the payroll isn’t measuring up, perform a review twice a year and give them goals to reach. If they continuously fail to meet those goals, it may be time to consider seeking out a new person to fill that position.
Additionally, because blogging can help your business thrive, you should be sure to hire bloggers who can create compelling content for you on a regular basis. This will help boost your brand’s visibility online as well as help you rank in the search engines. Read More