Take a Step Back to Evaluate 2005 Before Jumping into 2006

This time of year tends to be the time that everyone reflects on where they've been and plans where they want to go. As an entrepreneur, it's a great time to follow suit and take a step back to objectively analyze your business.

I think sometimes we tend to not want to do this because we are afraid of what we will find. We want to feel like we are doing a great job. We want to focus on what we've done well and forget about what we've done poorly. This is a huge mistake - you need to understand what your weaknesses are as much or more than you understand your strengths. No one is perfect, admitting that you have weaknesses shouldn't crush your spirits, it should do just the opposite. Admitting your weaknesses should provide motivation to improve in the coming year.

Take a day to analyze what's going on in your business. Make a list of all of your accomplishments in 2005 and a list of all of your failures in 2005. Also, identify positive and negative trends that will likely continue to impact your business in 2006. If you have a business plan, this would be a good time to update it. This will help clarify what you need to do to succeed and have a prosperous 2006.

Best wishes to all in the New Year!