When you set up a business and it’s running well, you may not want to make any changes. But it’s important to review your business regularly and make sure you’re still aligned with market forces. This could lead to minor changes or a major business overhaul.

Assessing your business helps you predict how it will perform in the future.

Reviewing a business plan at the right time and adjusting strategy can make or break a business.

Here are 5 ways to assess your business and its future.

1: Review your goals

As an entrepreneur, you are trying to achieve your goals and a good strategy is what will get you there. So if your goals change, change the path to get there. When you accomplish your goals, you’ll probably set new ones. As a result, you must change the allocation of resources to continue moving forward.

Sometimes goals change to accommodate changes in the market, the competitive landscape, or changing customer needs. Therefore, it is important to reflect on strategy as these changes occur.

2: Analyze customer needs

The main objective of every company is to serve the needs of customers in a more profitable way than its competitors. But customer needs evolve. So to become a successful entrepreneur, you need to be able to think strategically and continually generate new insights about the emerging needs of your audience. You should be able to shape your current or future products to better meet changing needs.

3: Review innovation changes regularly

Innovation is the creation of new value for customers. The new value can be technological, but it can also be generated in marketing, service, experience or process. It could be momentous or it could be minor.

To keep your business moving forward, pay attention to your customers, market, and competitors to know when new value or innovation is being offered and by whom. Then, evaluate your goals and strategies to see if you can change them to fit the new value in the market.

4: Check the efficiency of your business

Most new businesses are short-term and reactive. This offers flexibility, but is time consuming and expensive as you move from launching your business to concentrating on building and growing it.

Balance your ability to respond quickly with a clear strategy. This will help you decide if your actions are appropriate.

As you try to move your business forward, determine if there are any internal factors holding you back and address them.

5: Evaluate your financial position

Many businesses fail due to poor financial management or poor planning. Sometimes entrepreneurs forget their business plan.

For the success of your business, develop and implement sound financial and management systems. Updating the original business plan is a good place to start. When evaluating your finances, consider your cash flow, working capital, cost base, loans, and growth.