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A Year End Business Review - Why and How


Conduct a Year-End Business Review: A Step-by-Step Guide for Small Business Owners. By Dave Costello, TCV Growth Partner, with assistance from ChatGPT


Not sure about you, but during my career I often used the end of the year as a time to reflect how well we did, how we performed, what we could have improved and done better, and maybe what we should not have tried at all.  You should try this- do a year end business review, and see if it helps energize you for the coming new year.


Conducting a year-end business review can help business owners approach the new year with a clearer vision, actionable insights, and fresh strategies. A well-done review gives you an understanding of what’s working, what isn’t, and where your focus should be next year. Here’s a step-by-step guide to help you dive into your review in a way that’s meaningful, efficient, and even enjoyable.


Step 1: Gather Your Data

Before you start analyzing, you’ll need to get all the information you will need in one place. If you don’t have all of this information available, get what you can.  Here’s what I suggest you gather:

  • Financial Reports: At minimum, get your profit and loss statement, balance sheet, and cash flow statement if you have one. These will give you a high-level view of your financial health over the past year. Your accounting firm should be able to easily provide this information.

  • Sales Reports: Review reports on total sales, as well as breakdowns by product or service, to see what’s performing well and what could be improved. If your accounting chart of accounts is properly set up, this information should be obtainable.

  • Customer Feedback: Look at customer reviews, survey responses, and any feedback you’ve gathered throughout the year.

  • Marketing Metrics: If you run online ads or social media campaigns, collect data on clicks, conversions, website traffic, email open rates, and other metrics that reveal how well your marketing efforts are performing.

  • Employee Performance: Review performance metrics or feedback for any team members. This can include productivity data, satisfaction surveys, or goal completion rates.


Having this information at hand will make it easier to assess each area of your business as you go through the following steps.


Step 2: Review Financial Performance

Start with a deep dive into your finances. This will help you see whether your business is moving in the right direction and where adjustments may be necessary.  If you don’t feel that you have the skills to do this review, consider hiring a fractional CFO (like me) to help.  I live and breathe this stuff! Dave@TCV-Growth.Partners


  1. Assess Profitability: Look at your profit and loss statement and identify whether your revenue increased, decreased, or stayed flat. What were your most profitable months or quarters, and what factors contributed to those peaks?

  2. Analyze Expenses: Break down your expenses to see if there are any areas where costs increased unexpectedly or where you could trim back. If certain costs are steadily climbing, think about whether there are ways to reduce or offset them next year.

  3. Evaluate Cash Flow: Cash flow is the lifeblood of any small business. Review your cash flow statement to check if you faced any cash shortages and think about how you handled those situations. If cash flow was tight, consider building a buffer or exploring financing options for more breathing room.  (PS. I talked with a banker today whose bank is offering an unsecured line of credit for small businesses up to $100,000 based on information in the tax return.  (Contact me to find out who it is.)


This review will help you make financial adjustments so you can go into the new year with greater stability and clarity around your finances.


Step 3: Analyze Sales Performance

Sales are the driving force behind your business’s success, so it’s important to assess how well your products or services sold throughout the year.


  1. Identify Top Performers: Look at your sales data to determine your best-selling products or services. What were the features, benefits, or customer needs that made them stand out? Use these insights to decide whether to increase focus on these areas.

  2. Spot Opportunities for Improvement: On the flip side, take note of any products or services that didn’t perform as expected. If certain items consistently under performed, ask yourself why. Could they be rebranded, repriced, or marketed differently?

  3. Evaluate Sales Channels: Compare the performance of different sales channels, such as online vs. in-person or direct sales vs. third-party platforms. This will help you decide where to focus your sales efforts and marketing budget.


This review will give you insights into what’s resonating with your customers and where you may need to refine your offerings.  If you don’t have adequate information on your sales to make this assessment, then that might be something to implement so you have it for next year’s year-end business review.  TCV Growth Partners has experts with the experience needed to help you design and implement these reporting systems.  Again, feel free to contact me for great connections.


Step 4: Review Customer Feedback and Satisfaction

Your customers are at the heart of your business, and understanding their experience is invaluable.


  1. Analyze Reviews and Feedback: Read through customer reviews, testimonials, and survey responses. Note any recurring praise or complaints. Positive feedback shows what’s working well, while negative feedback can highlight areas for improvement.

  2. Identify Common Themes: Are there specific areas where customers consistently express satisfaction or frustration? Whether it’s your product quality, customer service, or ease of purchase, these themes reveal what matters most to your customers.

  3. Measure Customer Retention: If you have access to data on repeat customers, look at how well you’re retaining them. Retention is often a great indicator of customer satisfaction and loyalty. Low retention rates may signal a need for better engagement or follow-up strategies.


Understanding customer feedback helps you enhance your offerings and tailor your customer experience for next year. Getting customer reviews is a specialty of TCV's marketing gurus. Let me know if you would like a connection.


Step 5: Assess Marketing and Advertising Efforts

Your marketing and advertising efforts drive visibility and attract customers. Reviewing their performance will help you refine your approach.


  1. Evaluate Campaign Performance: Look at each campaign, whether it’s a social media ad, email newsletter, or seasonal promotion. Did it meet your goals? Take note of campaigns that performed well and think about how you can replicate their success.

  2. Analyze Marketing Channels: Compare different marketing channels (e.g., social media, email, search ads) to see where you got the best results. If certain channels under performed, you may want to consider whether they’re worth investing in next year.

  3. Set New Goals for Customer Acquisition and Engagement: Based on what you learned, set realistic marketing goals for next year, such as improving engagement rates or increasing customer acquisition through a specific channel.


Your marketing review helps ensure you’re investing in the right strategies to reach your target audience effectively. We have connections to the best digital marketing people. Let me know if you would like an introduction.


Step 6: Evaluate Team Performance

If you have employees or contractors, now’s the time to assess their contributions and development.


  1. Review Goals and Milestones: Go over each team member’s goals for the year and assess how well they achieved them. Celebrate successes and have open conversations about any areas for growth.

  2. Gather Employee Feedback: Conduct an anonymous survey or hold one-on-one meetings to gather feedback on what your team members liked and what they felt could be improved. Employee insights can often reveal ways to create a better work environment or improve productivity.

  3. Plan for Future Development: Identify any skill gaps or training opportunities for each team member. This is a good time to set goals and training plans that align with the business’s future needs.


Our Operations specialists can help you create the goals and milestones (KPI's) tailored to your particular business. Happy to help, let me know.


Step 7: Set New Goals and Priorities


With all this information in hand, you’re ready to outline your goals for the upcoming year.

  1. Set SMART Goals: SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound. Use this framework to create actionable goals for each area of your business.

  2. Prioritize Key Areas: Choose 2-3 high-impact priorities based on your review. Whether it’s boosting sales, improving customer retention, or enhancing team productivity, focusing on a few key areas increases the likelihood of seeing meaningful progress.

  3. Create an Action Plan: For each goal, write down actionable steps, assign deadlines, and determine who’s responsible. Breaking down each goal into smaller tasks makes it easier to follow through.


Setting clear goals and priorities gives you a roadmap for the upcoming year, ensuring you stay on track and focused on what matters most. Again, TCV's Planning specialists are ready to help. Let's chat.


Wrapping Up

Conducting a year-end business review can seem like a big task, but by breaking it down into these manageable steps, you can make it a productive and rewarding process. By the end, you’ll have a comprehensive view of your business’s performance, as well as a clear, actionable plan to enter the new year with purpose and direction.  If you don’t feel you have the information necessary in each area of your business, don’t worry.  Start where you are.  Let us help you build the reporting processes over time as you continue to work on improving and growing your business.


A final tip: Don’t forget to celebrate your wins! Recognizing the progress you and your team have made is just as important as planning for the future. Here’s to a prosperous New Year and to achieving your business goals! All the best, Dave@TCV-Growth.Partners


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