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Operational Effectiveness

To assess your space, equipment and processes, begin at ground zero. Ask employees if their work environment needs are being met -- solicit comments on everything from which forms and documents need revising to how policies and procedures are impacting productivity. Assimilate these observations as you identify areas to update, streamline or outsource.

Pay particular attention to technology, from production to back office. "More and more business is being done in Web-based environments," says Silverman. "Whether it's taking orders from customers, interacting with suppliers or training employees, using technology properly can save you time and money as well as help you grow."

Financial Status

Augment traditional budgeting and tax-prep tasks with a more robust approach: Analyze cash flow trends and implement appropriate asset management strategies. Investigate tax advantage opportunities. Review loan/lease agreements to ensure you're getting the most favorable terms. Run a cost/benefit analysis before renewing maintenance contracts, subscriptions, memberships or other recurring agreements. And, get bids on all contracted goods and services once a year to ensure the best quality and price.

In addition, consider whether your financial statements are sufficient, Silverman advises. "For example, instead of a compilation you may need a review. A review goes further than a compilation because it includes comparisons with your competition."

Risk Management

Yesterday's measures to safeguard your business may not protect it tomorrow, says Starns. "Update forms and contracts to comply with the laws," he advises. "Scrutinize insurance line items for additions or deletions. Consider new tools, such as non-compete agreements to ensure your workforce isn't raided, or contract provisions that send disputes to arbitration rather than to court."

Properly managing computerized information is another concern. "Sit down once a year and make sure you have your arms around technology and e-commerce," says Starns. "Are you set up to handle contracts under the new e-signature laws? Do you know how long to keep information; when to destroy it, and how to destroy it effectively? What are your email policies? People don't think about writing an email like a memo and it's common to make comments or pass along information that, in hindsight, is unfortunate."

The Internet's one-click capability to mass-market fiction makes a crisis-management strategy equally critical. "Regardless of where a problem originates, your brand can bear the brunt of the damage," reminds Starns. "Public relations is often viewed only as a marketing component, but effective PR also includes damage control."

Growth Strategies

Fast or slow, successful businesses grow. But effectively managing growth means effectively managing promises, says Silverman. "Anytime you're talking to a client or subordinate you're making promises -- whether you say you'll ship a widget in two weeks or give a raise in a month," he explains. "It's important to analyze your track record and your plans going forward to ensure you're making promises you can fulfill."

Points to ponder include: Are the products and services we're offering consistent with our business goals? Are we targeting the right markets? What new markets are emerging? What partnerships will bring us new or better customers? How should we adjust our marketing and sales efforts? Is a merger, acquisition or disposition appropriate?

A thorough look at e-commerce is also essential. If you're already buying or selling on the Web, what upgrades in technology, training, policies and procedures will be necessary? If you're not, when will you get online and how?

Exit/Succession Strategies

Previously a concern relegated to those approaching retirement, exit and succession strategies are now for all. "Even if you're a young person and your business is on a fast track, an unforeseen occurrence could take you away for periods of time," says Silverman. "Or, a change in your industry could make a merger inevitable."

No matter what the circumstance, a smooth transition depends on planning ahead. In addition to market forces, account for life events that impact you, your management team and even the spouses involved. Divorce, child rearing, elderly parent care and similar activities all have the potential to affect your business. "Remember, time is becoming more valuable," Silverman says. "Once a year you and your key employees should ponder ‘where am I and where do I want to be?'"

Culture Development

Whether you're aware of it or not, your business has a culture, says Silverman. And, once you've evaluated the other strategic areas of your business, be sure the components of your culture will support your mission and goals.

To keep pace in the new economy, Silverman suggests one component should be learning. "When people do the same thing day after day, boredom sets in and productivity is reduced," he notes. "With a learning culture, people grow as your business grows and productivity increases exponentially."

Nurturing a positive problem-reporting environment is also imperative. "It's common that management doesn't even know about a problem because employees get the message ‘I better keep my mouth shut,'" says Starns. "From a legal perspective, ignoring a problem can work against you as much or more than the problem itself. So, make sure you have an effective reporting and mitigation system -- which is not the same as having a grievance system."

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