The most basic thing that we have to know in whatever we do is to basically know where we stand. It is extremely important especially in business. We all know the fact that living in the business world is more like living in the wild. We have to know the whole situation, our strengths, and most importantly, our weaknesses in order to survive.

But to have an effective business it doesn't end there. It is also important to make sure that you also know whats happening with your competitors. When you are aware on what your business has and what you don't have, as well as what your competitors have and what they don't have. You will know key areas to focus on so that you can improve your business in the most effective way possible.

How do you know these things?
You start by ensuring you measure and analyze your situation. Basically, your main goal is to enhance your weaknesses and to make sure that you will maintain and maximize your strengths. Aside from maximizing your strengths and enhancing your weaknesses, it is also important to make the right actions at the right time. However, these are just common traits and skills of most entrepreneurs, they are at their core action takers. The most important task we can do to lead us to our business growth and eventually, to our success is effective business evaluation.

So what is effective business evaluation?

This is when we critically evaluate the status of our business based on facts. It's like looking in the rear view mirror of your car.

We look at things like
Our people
Our competitors
Our revenue
Our profits


Then we need to look out the windscreen of the car again so we know where we are going.

We focus on
Where the business is heading
What needs improving
Forecast on Cashflow
Forecast on Profits

See, when you are able to evaluate and analyze everything in the most precise way, you will be able to formulate solutions to existing and upcoming problems. You will also be able to utilize your strengths and improve your weaknesses.

Look, I understand that evaluating is not an easy task. If you will just be open minded and if are willing to accept the real score then nothing can go wrong. I mean would you play a game if you didn't know the score? When you already have the results of your evaluation, the next thing to do is to make necessary actions. Wait for results and re-evaluate everything again. It is a cycle and if you will use and follow this cycle in your system, it will be easy for you to succeed. Of course, it is also important to work smart, to manage your priorities, and to be happy in whatever we are doing.

Carl Taylor is the Author of Red Means Go!, #1 New & Noteworthy Business Book as rated by iTunes, and at age 24 had sold 3 businesses. Visit his site for free tips on Building your Business like an Effective Entrepreneur