Last week we discussed the Business Hierarchy of Needs and I shared the link to the online assessment tool. What did you learn? Were there any surprises? This week, let’s talk about the 4 Steps for evaluating your business.
The 4 Steps for Evaluating Your Business
If you recall, the BHN helps you pinpoint what to fix next. Here is the four-step process that will become your standard operating process as you use the evaluation tool for your business.
Step 1: Identify the vital need. The assessment tool found here will ask you a series of questions to help with this process. The answers are Yes or No. Be honest with yourself so the tool will give you the feedback to really pinpoint the problem.
Step 2: Pinpoint the lowest level of unchecked core needs. The report you receive after the assessment gives you the general area of focus. If you need help getting clarity around this vital need, please reach out so we can help.
Step 3: Fulfill the Vital Need. We use a methodology called the OMEN. I’ll go into this in detail next, but you want to ensure you understand the objective and what will drive the results. OMEN puts structure to the process of reaching resolution.
Step 4: Repeat. Once you have fulfilled the vital need, start at Step 1 again to determine your next Vital Need. Don’t worry about not having another need; we all know this job of business owner is never really done.
Using the OMEN Acronym
Once you have identified your Vital Need, let’s get clear about OMEN. OMEN is simply an acronym to help us remember that we need the following four components for our process: Objective, Measurement, Evaluation and Nurture. Here’s a little more info about each one. You will use the OMEN process to specify objectives and drive results.
- Objective – What is the result you want to achieve? Where do you stand now? What must the result look like to ensure that you met your objective?
- Measurement – How can you measure your progress toward your result or objective? Make it specific within a time frame and keep it as simple as possible.
- Evaluation Frequency – How often will you review measurements to gauge progress? Perhaps you will set interim goals along the way.
- Nurture – How will you adjust either the objective or the measurement as you move through the process. When will you make changes? Ensure the relevant team members have visibility and authority to raise concerns along the way.
The 4 steps for evaluating tool allows you to identify the vital need. The OMEN process gives you a framework to fulfill the need. Now that you know how it will work, take the time to complete the 4 step evaluation so you can be sure you’re working on the aspect of your business that will give you the desired results.
Interested in Profit First?
If your ecommerce business isn’t where you’d like it to be in terms of profitability, check out my book, Profit First for Ecommerce Sellers. It answers important questions about how to implement Profit First in an ecommerce business. Take control of your money and your business, and put Profit First to work for you! Contact bookskeep today for more information on ecommerce bookkeeping.