……Management, Finance, Marketing, Sales, Your People & Profits?
Most business owners would really love to be able to understand if their businesses are realizing their full potential or not. A common problem is that they cannot see the forest for the trees. They get so close to the business they can no longer be objective about what works and what does not work. Think of a Business Health Check as a more serious version of a board or management meeting – a deep-dive into each and every part of the business. It can be a sobering experience, but it’s always of great benefit to the business and its owners.
We recommend taking the pulse of the business at least annually, to be clear about the parts of the business most in need of improvement, issues needing resolution and opportunities to be exploited. And all with a very keen eye on profitability. For many successful businesses, an annual health check is considered essential good management and is planned in advance. Here are some questions to get you started, if you find that the answers are not to your liking, then a deep-dive is likely in order to identify the root causes and to put the appropriate action plan to work.
Has cumulative cash flow been positive for the last 12 months?
Is your gross margin (gross profit/revenue) higher than last year?
Is your operating margin or earnings before interest and taxes (operating profit/revenue) higher than last year?
Is your net margin or return on sales (net profit/revenue) higher than last year?
Is the overall market for your type of product or service growing?
Have you gained market share in the last year?
Are this year’s sales better than last year (YTD)?
Have fewer than 10% of your customers gone to a competitor in the last year?
Are at least 80% of your customers paying on time?
Have all your key employees remained with the company during the last year?
Do you feel you have the necessary talent among your employees to continue to operate effectively?
Do you systematically stay on top of changing customer needs or tastes, new competitors and other key issues through networking or communication with customers? Are you prepared for these changes?
If you weren’t in the business you’re in, would you enter it today?
Are there any other key measurements you follow in your particular business?
Do you think your measurement tools are adequate?
We will be discussing advantages and pitfalls of preventive maintenance for your business.
Taking Care of Business” with theteam from FYI Business Consulting & Outsource Services. Tune in LIVE at 3pm to WTER