{"id":4537,"date":"2025-12-02T08:00:00","date_gmt":"2025-12-02T08:00:00","guid":{"rendered":"https:\/\/entrepreneurship.asu.edu\/blog\/?p=4537"},"modified":"2025-11-26T18:23:39","modified_gmt":"2025-11-26T18:23:39","slug":"six-ways-to-evaluate-business-performance-and-set-goals-for-2026","status":"publish","type":"post","link":"https:\/\/entrepreneurship.asu.edu\/blog\/2025\/12\/02\/six-ways-to-evaluate-business-performance-and-set-goals-for-2026\/","title":{"rendered":"Six Ways to Evaluate Business Performance and Set Goals for 2026"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-1.jpg?strip=all&w=2560\"><img decoding=\"async\" width=\"1024\" height=\"573\" src=\"https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-1-1024x573.jpg?strip=all\" alt=\"Two coworkers sitting at a desk looking at their laptops.\" class=\"wp-image-4538\" srcset=\"https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-1-1024x573.jpg?strip=all 1024w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-1-300x168.jpg?strip=all 300w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-1-768x430.jpg?strip=all 768w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-1.jpg?strip=all 1346w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-1.jpg?strip=all&amp;w=538 538w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-1.jpg?strip=all&amp;w=1076 1076w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-1.jpg?strip=all&amp;w=450 450w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>Photo by ASU Media<\/em><\/figcaption><\/figure>\n\n\n<p><span style=\"font-weight: 400\">As 2025 comes to a close, it\u2019s easy to focus on wrapping up financial statements. But the end of the year also creates a pivotal opportunity to step back, evaluate and reset. For entrepreneurs and business leaders, this process includes reviewing numbers and understanding what those numbers mean for your strategy, culture and growth trajectory.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The businesses that thrive in uncertain and competitive environments are those that consistently evaluate their performance, learn from experience and set deliberate, forward-looking goals. With 2026 approaching, now is the time to examine where your company stands and where you want it to go.<\/span><\/p>\n<h3><b>1. Reflecting on 2025: Lessons Learned<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Reflection begins with honest self-assessment. Start by revisiting your 2025 objectives: Did <\/span><span style=\"font-weight: 400\">you meet your revenue targets? Were customer acquisition strategies effective? How well<\/span><\/p>\n<p><span style=\"font-weight: 400\">did you manage cash flow? <\/span><span style=\"font-weight: 400\">But evaluation extends beyond financial metrics. Consider qualitative aspects as well.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Customer Experience:<\/b><span style=\"font-weight: 400\"> What feedback did clients or partners provide, and how did you respond?<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Operational Performance: <\/b><span style=\"font-weight: 400\">Did processes run smoothly, or were there recurring inefficiencies?<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Team Health:<\/b><span style=\"font-weight: 400\"> How was morale, retention and professional development within your organization?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Documenting lessons learned helps you carry forward effective practices and address <\/span><span style=\"font-weight: 400\">recurring issues. Treat both successes and failures as strategic learning opportunities. For\u00a0<\/span><span style=\"font-weight: 400\">example, if a marketing campaign underperformed, instead of discarding the effort, analyze\u00a0<\/span><span style=\"font-weight: 400\">what didn\u2019t resonate and refine it for future use.<\/span><\/p>\n<h3><b>2. Using Data to Drive Decisions<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Business decisions made on instinct alone risk overlooking hidden trends or underlying challenges. Data provides a more objective lens. As you evaluate 2025, go deeper than top-line results.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Financial Data:<\/b><span style=\"font-weight: 400\"> Beyond revenue, track profitability, margins, recurring vs. one-time sales and cost of customer acquisition. This helps you understand your sustainability.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Customer Metrics:<\/b><span style=\"font-weight: 400\"> Monitor retention rates, net promoter scores (NPS), lifetime value and digital engagement. These can give you clues to improving loyalty and driving repeat purchases.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Marketing &amp; Sales Metrics:<\/b><span style=\"font-weight: 400\"> Track lead sources, conversion rates and campaign performance. Understanding which channels bring in the most qualified prospects and how those prospects move through the sales funnel can help you focus resources where they\u2019ll have the greatest impact.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Operational Metrics:<\/b><span style=\"font-weight: 400\"> Measure efficiency in supply chains, production cycles or project delivery timelines. Are there bottlenecks or friction that are slowing down your growth?<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Innovation Metrics:<\/b><span style=\"font-weight: 400\"> Consider how much time, resources and budget were allocated to R&amp;D or new initiatives. Did you find a balance between consistency and identifying new trends?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Using dashboards, key performance indicators (KPIs) and even quarterly \u201cpulse checks\u201d can help leaders see beyond daily operations and make informed, proactive choices. If you\u2019re ready to strengthen the financial foundation of your business, we offer <\/span><a href=\"https:\/\/entrepreneurship.asu.edu\/entrepreneurship-fundamentals\/get-started-with-finances\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">resources designed to help you build confidence and align your financial strategy with your vision.<\/span><\/a><span style=\"font-weight: 400\"> Businesses that embed data into strategy build resilience against surprises.<\/span><\/p>\n<p>\u00a0<\/p>\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-2.jpg?strip=all&w=2560\"><img decoding=\"async\" width=\"1024\" height=\"573\" src=\"https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-2-1024x573.jpg?strip=all\" alt=\"Three coworkers standing and looking at a brainstorming board.\" class=\"wp-image-4539\" srcset=\"https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-2-1024x573.jpg?strip=all 1024w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-2-300x168.jpg?strip=all 300w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-2-768x429.jpg?strip=all 768w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-2.jpg?strip=all 1125w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-2.jpg?strip=all&amp;w=225 225w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-2.jpg?strip=all&amp;w=450 450w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-2.jpg?strip=all&amp;w=675 675w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-2.jpg?strip=all&amp;w=900 900w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>Photo by ASU Media<\/em><\/figcaption><\/figure>\n\n\n<h3><b>3. Aligning Goals with Your Vision<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Growth can easily become unfocused without a guiding compass. Revisit your company\u2019s mission and vision before setting 2026 objectives. Does this goal bring us closer to the impact we want to make long-term?<\/span><\/p>\n<p><span style=\"font-weight: 400\">For instance, if your mission is to be a leader in sustainable innovation, then your 2026 goals should include tangible initiatives like reducing carbon output, implementing eco-friendly supply chains or pursuing certifications that reflect your values.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Aligning goals with vision ensures that day-to-day progress contributes to the bigger picture. This also provides clarity for your team, investors and stakeholders, reinforcing that your business is not just chasing growth but moving with intention.<\/span><\/p>\n<h3><b>4. Setting SMART Goals for 2026<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Once you\u2019ve clarified your vision, it\u2019s time to translate ambitions into structured goals. The SMART framework provides discipline:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Specific:<\/b><span style=\"font-weight: 400\"> Replace vague goals like \u201cimprove sales\u201d with \u201cexpand into two new regional markets and increase sales by 20%.\u201d<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Measurable:<\/b><span style=\"font-weight: 400\"> Use clear metrics, such as monthly revenue benchmarks or website conversion rates, to track progress.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Achievable:<\/b><span style=\"font-weight: 400\"> Stretch your organization without overextending. Set goals that challenge but remain realistic, given your resources.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Relevant:<\/b><span style=\"font-weight: 400\"> Ensure every objective connects directly to your strategic priorities.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Time-bound:<\/b><span style=\"font-weight: 400\"> Establish deadlines, quarterly checkpoints, mid-year reviews, or annual targets.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">By structuring goals in this way, you create accountability at every level of your organization. Teams know what success looks like and can measure whether they\u2019re on track throughout the year.<\/span><\/p>\n<p><b style=\"font-size: 1.5rem;letter-spacing: -0.0525rem\">5. Engaging Your Team in the Process<\/b><\/p>\n<p><span style=\"font-weight: 400\">A business\u2019s goals are only as strong as the team behind them. Leaders who set goals in isolation risk missing insights from those closest to customers, operations and innovation. Involve your employees in both the evaluation and goal-setting process. This can be done through workshops, surveys or dedicated strategy sessions. Benefits of bringing in other stakeholders into your goal setting include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Shared Ownership:<\/b><span style=\"font-weight: 400\"> When employees help shape goals, they feel invested in achieving them. <\/span><\/li>\n<li style=\"font-weight: 400\"><b>Diverse Perspectives:<\/b><span style=\"font-weight: 400\"> Frontline staff may spot operational inefficiencies that leadership overlooked.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Improved Morale:<\/b><span style=\"font-weight: 400\"> Engagement fosters trust, motivation and a stronger culture of collaboration.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">For 2026, consider building cross-functional teams to tackle specific strategic goals, such as digital transformation, new market expansion or customer experience improvements. This distributes responsibility and fosters innovation across departments.<\/span><\/p>\n<p>\u00a0<\/p>\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-3.jpg?strip=all&w=2560\"><img decoding=\"async\" width=\"1024\" height=\"573\" src=\"https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-3-1024x573.jpg?strip=all\" alt=\"Two coworkers sitting at a desk looking at paperwork and one person tapping on a calculator.\n\" class=\"wp-image-4540\" srcset=\"https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-3-1024x573.jpg?strip=all 1024w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-3-300x168.jpg?strip=all 300w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-3-768x429.jpg?strip=all 768w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-3.jpg?strip=all 1125w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-3.jpg?strip=all&amp;w=225 225w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-3.jpg?strip=all&amp;w=450 450w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-3.jpg?strip=all&amp;w=675 675w, https:\/\/et3ukr3n7ug.exactdn.com\/blog\/wp-content\/uploads\/sites\/3\/2025\/11\/ASU-Blog-Business-Planning-for-2026-3.jpg?strip=all&amp;w=900 900w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>Photo by Mikhail Nilov of Pexels<\/em><\/figcaption><\/figure>\n\n\n<h3><b>6. Preparing for Growth and Innovation<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Looking ahead, businesses must position themselves not just to perform but to evolve. The competitive landscape in 2026 will be shaped by technology adoption, global shifts and evolving customer expectations. Consider these opportunities for growth and innovation:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Technology:<\/b><span style=\"font-weight: 400\"> Can AI, automation or analytics tools improve efficiency or enhance customer engagement? <\/span><\/li>\n<li style=\"font-weight: 400\"><b>Market Expansion:<\/b><span style=\"font-weight: 400\"> Are there untapped audiences, domestic or international, that align with your value proposition?<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Sustainability:<\/b><span style=\"font-weight: 400\"> How will environmental and social responsibility factor into your long-term differentiation?<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Strategic Partnerships:<\/b><span style=\"font-weight: 400\"> What collaborations could accelerate your innovation or expand your reach?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Investing in innovation doesn\u2019t always mean radical transformation. It can start with small experiments, like piloting a new product, adopting a new tool or testing a fresh service model, that prepare you to scale when opportunities arise.\u00a0<\/span><\/p>\n<h3><b>Building Momentum for 2026<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Don\u2019t treat evaluating your business\u2019s performance and setting goals for 2026 like a checklist. It should be a strategic discipline. By reflecting on 2025 with honesty, leveraging data, aligning goals with vision, applying SMART structures, engaging your team and preparing for innovation, you equip your organization to not just adapt, but to thrive. As part of that process, you may recognize that you need additional funding to reach the next stage of growth. When that happens, <\/span><a href=\"https:\/\/entrepreneurship.asu.edu\/blog\/2025\/10\/29\/how-to-fund-your-startup-idea-grants-timing-outside-investment-and-other-financing-tips\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">exploring the right types of funding<\/span><\/a><span style=\"font-weight: 400\"> becomes an important step in advancing your business with confidence.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">At Edson E+I, we encourage entrepreneurs to view this process as an ongoing cycle of reflection and growth. The businesses that succeed in 2026 and beyond will be those that combine strategic evaluation with bold, forward-looking action. The future is built today with one intentional goal at a time, and you can <\/span><a href=\"https:\/\/entrepreneurship.asu.edu\/resources\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">find more resources to help you on your journey on our website.<\/span><\/a><\/p>","protected":false},"excerpt":{"rendered":"As 2025 comes to a close, it\u2019s easy to focus on wrapping up financial statements. 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