Kickstart your year with these entrepreneurial health checkups

With the turn of the calendar comes essential personal health checkups – stuff you do every year to make sure you are staying on track. It might be tempting to avoid these checks. That means, “If it ain’t broke, don’t fix it,” right? However, we do not all the time realize that we are “broken” until we take a closer look. We cannot turn out to be healthier if we do not get check-ups, set goals, and work to attain them.

Your entrepreneurial health also matters. And while chances are you’ll overlook your entrepreneurial health in the rush of running a business, it’s incredibly essential. If you ought to succeed and build a company that can outlive your leadership, you wish annual inspections.

The goal is to build value in your company that prepares you for the future. It starts with annual internal culture, personal and values ​​reviews that result in a short- and long-term planning process that can position you for personal, financial and business success. Therefore, I conduct three inspections each calendar year to make sure the good condition of entrepreneurs.

Check #1: People and culture

Every year I send an internal survey to envision the health of my company’s employees. They are extremely essential for the company’s value. The survey takes about 20 minutes, and based on it I create a barometer of worker satisfaction, due to which I have a real measurement of atmospheric pressure in the company.

The most vital element of this survey is that I ask them to rank about 20 advantages in line with what they would love included in their compensation package. Then, in the coming year, we are going to provide all five essential advantages and most of the next five. Benefit rankings 11 and 12 could also be awarded if certain key performance indicators are met in the coming year, and each worker can select the two advantages most vital to them. It’s a approach to understand what’s essential to employees overall, while recognizing that not every worker needs the same things as a part of their advantages package.

Check #2: Value

I also do an enterprise value assessment every year, which helps me understand the value of my company if I were to sell it at this point. The value assessment helps me discover areas where the company has increased in value and where our opportunities lie for growth in the coming year. It also helps me consider whether this year is the right time to sell the business.

For example, if my company is price $50 million and my wealth gap – the sum of money I would like to build up to fulfill my personal wealth needs over my lifetime – is $25 million, selling may make financial sense even if it is not my last item. To get the clearest picture possible, I all the time recommend engaging a value advisor—one who is a Certified Exit Planning Advisor (CEPA).

Check #3: Personal

Of all the checks, this is the one most frequently missed, which is strange because the latest year often comes with a time of non-public introspection. Let’s say your value assessment indicates that your company must enter a period of growth, and your advisory team says that your market conditions are ripe for growth. This signifies that your company will need an injection of money and time. Is this the right time to pursue your personal goals – as a parent, as a spouse – to proceed investing in your company? Both in terms of time and money? If your personal goals are not aligned with the direction your business is heading, you will have to deal with these issues before engaging in any annual planning process.

Control processing, planning with process

After completing these three checks, I’m equipped with the right information to begin planning for the latest year, in addition to any long-term strategy. Values ​​and personal checks help me understand whether my company is entering a period of growth (or what I would like to do to attain it) and whether I’m preparing to go away the company. With this understanding, I can visualize my short and long run goals. Here are some things to maintain in mind:

• Start by pondering long run – three to 5 years. Host a retreat to debate your vision and future with your company’s leadership, using guidance from your three annual check-ins.
• Then take a step back. Together, develop a written plan for the next two years, including each strategy and financial goals. Don’t just give numbers – explain how you will get to those numbers. Give each department leader time during the retreat to clarify to colleagues how they may achieve these goals.
• Then focus on the year ahead. Identify short-term goals, opportunities, threats, and strategies that generate income and value. Identify the topics included in the plan. Need more technology? More strategic partners? Operational changes? If you are planning an exit, how will you quickly maintain or speed up value? This must be your most detailed plan – it’s the one you begin working on when the calendar begins a latest year.

This time of year all the time stimulates me. Each latest year brings countless opportunities that actually excite my entrepreneurial spirit. Making sure I build a plan that stays true to what I discover during my annual check-ins gives me the best probability of moving closer to my personal and business goals.