Assessing business performance is essential at any stage of a business. Business assessments are an excellent way to evaluate the company’s current state. They should be performed periodically and should be included in your business plan. A well-thought-out and detailed assessment will not only help you identify the state of your business currently but will also help you decide upon the direction you want your business to take. While assessments are typically considered mandatory for high-level organizations, they are a critical tool that should also be used in both small and midsize companies.

It is a wise step to assess your business from the ground up. Addressing where you are today, what your short and long-term goals are, and what you will need to do to make sure you get to the goals you have set in place are all things to include in your business. Business assessment tools are readily available, and a business advisor can help you identify these elements with clarity and direction.

Six critical areas should be explored in your business assessment: Organization, Processes, Financials, Technology, Clients, and Competition. You will want to examine the business practices you currently have for each area.


In your business assessment, identify processes that are vital to the effectiveness and efficiency of the business. Six core processes that can be used to enhance your business:

  • The financial planning process of the business
  • The intake process of the business
  • The investment planning and management process of the business
  • The risk management process of the business
  • The client planning and review process of the business
  • The client service process of the business
  • The client planning and review process of the business

Use these to assess your current situation and identify areas in need of improvement.


This particular element assesses the roles and responsibilities of each manager and employee in the organization. Here, you will need to evaluate yourself, your employees, and your management team.


It is essential that you understand how to manage your finances effectively. This can include keeping financial records current and plotting your future cash flow. Well-managed finances can help you to know your current business status and where it is going. 


Businesses who are smaller, or even, midsize, often neglect to invest too much in technology. However, you should assess your technology requirements with the intent of streamlining and integrating business processes. Technology typically helps work to be done easier, faster, and better.

Basic requirements include:

  • Office software such as Word, Excel, and PowerPoint
  • A financial planning tool
  • A customer relationship management (CRM) tool
  • An investment planning and management tool
  • Information-based tools
  • Specialized tools, where appropriate

Your Clients or Market

Don’t forget to assess your clients or your market. They help you to understand why you have a business in the first place. Engaging a viable market can make your business profitable. 


Nearly all businesses have competitors. Gaining a working knowledge of your competition can help to determine where you can improve your business. If this all sounds a little overwhelming, don’t sweat it. Save your precious time by having a business advisor conduct or guide you through the assessment process. Contact a business advisor in your local area for more information or to get help with your business assessment.