In the first part of this article, I am going to discuss the importance of a business audit, the importance of understanding your business, how & why to develop a business plan and the role of performance metrics. In the second part I will be sharing a number of checklists which will help you analyze your business and benchmark performance standards for the future and also suggest possible next steps.
If you want to get the maximum benefit from this audit, please make sure that you read through all the material and honestly answer all the questions, with an “Yes” answer indicating no problem and a “No” answer indicating a problem in that area.
This audit is more than a simple audit about management or finances. It provides an overview of the core aspects of your business including its soul i.e. Vision, Mission & Values. Apart from that, the type of organization you are, value proposition, innovation capability, physical assets, marketing, advertising & public relations, financial planning, human resources, growth plans and governance & compliance are also covered. Once the audit is complete, you must & analyze each section of the audit to develop an action and next steps.
A healthy & successful business is well rounded and all the core areas are well balanced. The audit will help the business owner/manager identify the areas that need to be worked on and regular audit will help the business become more adaptive, efficient & prosperous.
Now, more than ever, businesses need to make sure that they are:
· Headed in the right direction
· Competing in the right markets, with the right products and/or services
· Optimizing their market situation - performing better than the competition
· Using the right mix of assets, skills, finance, infrastructure and relationships that enables them maximum value to their customers
· Minimizing the costs that do not add value to their business or customers
· Aware of external environmental changes and are building the capability to respond quickly to new opportunities or threats
· Measuring their performance continuously so that they are always aware of their current performance and the successes or failures of their strategic initiatives.