Business Health Check

Your cashflow needs work. Focus on removing bad debts, aligning your credit terms with your suppliers and organising your books. If you need serious help, consider an outsourced CFO.

Your cashflow tends to hit a few rough patches. Continue to be diligent in following up on late payments, and ensure payment terms are crystal clear for your customers.

Great job! Maintaining excellent cashflow is no small task. You're enjoying minimal debtor days and are staying accurate with your forecasts.

Your profitability is not where you want it to be. Whether you're a start up or you've hit a rough patch, it's time to get your profitability back on track. Consider reviewing your pricing strategy as a first port of call.

Your profitability is inconsistent. Some products and/or services perform well, although others are losing you money. Consider looking at your pricing and bundling of your products/services as well as your overheads and COGS.

Well done, your bottom line is looking very healthy. Your pricing is on point and you are meeting your revenue target.

Are you breaking even, or have your overheads blown out? Either way, focus on reducing costs to maximise profits.

You have varying outcomes when comparing your costs to your revenue. Perhaps your revenue is high, but your costs are higher? Managing costs and revenue to maximize profit is key.

Great! Your business is cost-efficient. You know your expected costs and manage the unexpected ones well. The revenue is steadily increasing while you keep costs at a minimum.

You may be preoccupied with metrics that don't impact your profitability. Try to focus on the profitable sections of your customer base, analyse and understand what's working and applying it across the business.

There may be some inconsistencies between your key profit drivers. Remember to focus on your most profitable customers, instead of trying to please the price sensitive ones. This will lead to long term profits and long term relationships.

You understand your profit drivers (price, variable costs, fixed costs and sales volume) and how they affect the financial performance of your business. Keep it up!

You rarely do your forecasting and budgeting, but you know you have to start somewhere. Start by building a simple budget representing the key aspects of your business.

You have a budget, but you rarely compare it to your results. Review your profitability regularly to determine areas of opportunity and weakness.

You have an intimate understanding of how your profitability compares to your budget.

Your tax affairs need some attention. Your returns may be incomplete, and more complex tax matters might be unfamiliar to you. Consider seeking some professional business tax advice.

Your tax position might be optimised, but there's room for improvement and reassurance. Speak to your advisor about your tax position in your next meeting.

You're comfortable with your business's tax position and you're confident in more complex tax matters, like indirect taxes. You understand how your business structure affects your tax position - that's got to feel good!

You're unsure whether your business structure is right for you, or you've outgrown your structure completely. Speak to your advisor and plan a course of action ASAP.

Reflecting on where your business is now versus where your business started, you see that your structure may be putting your assets at risk. Review your structure and consider threats and opportunities.

You're confident that your business structure meets all of your needs now and in the future, including succession, tax efficiency, wealth creation and asset protection. Nice!

You have limited information about your business, and it is difficult to extract and understand and often arrives late or never at all. Consider finding a cloud-based accounting solution for faster reporting and more accurate insights.

You have a cloud-based accounting platform, but your business is still not running as smooth as you'd like. The problem may lie with the accuracy of the information, the team managing it or the original set up. Either way, consider revisiting the system set up and make sure it's aligned to your goals.

Your accounting systems are performing at their best with very limited maintenance and support required. You have accurate and timely financial information letting you run your business effectively.

Your business plan needs work. Consider setting SMART goals, reviewing your plan with an advisor and biting off actionable small chunks to get some forward momentum.

You may have set business goals when you documented your plan, but you feel that you've lost focus on these along the way. Review your plan and reflect on your progress towards your key strategic goals.

Your eyes are firmly on the prize. You have SMART goals and a plan for reaching them.

Perhaps you feel that your business is spinning its wheels, or you're not sure whether you're heading in the right direction. Seek assistance from a business advisor to gain much needed clarity.

You have a growth plan, but you're not 100% sure whether it's effective. Consider researching business plans online, or speaking to your advisor to evaluate whether you're light on in certain areas like succession, marketing, acquisitions and more.

Great job. You have a comprehensive growth plan with actionable tactics and a realistic timeline.

You have a dedicated set of eyes on your funding arrangements. Consider exploring banking advisors to get your funding on track.

Your banking/funding arrangements might need some attention. Things change quickly and it's important information to review.

You have a great relationship with your bank and business advisor. You have access to a range of banking solutions, including access to International Trade and Foreign Exchange, Debtor Finance, Equipment Finance and Commercial Insurance.

You may not fully understand the risks to your business, or you're unsure how to tackle them. It's never too late to build a contigency plan with the right professional help.

You understand some of the risks your business could be facing, however you may not be confident in your ability to manage them.

Awesome! You have a solid understanding of your business's risks and you're confident that your contingency plan is equipped to manage them. Well done.

Business owners face several risks, which is why insurances are critical. You may not have business insurance, or you're not confident in its quality. Put your mind at ease and seek professional advice before it's too late.

You have insurances in place, but it may have been a while since it's been reviewed. Review your insurance and operating structure to ensure your current protection is sufficient for how your business looks today.

You're proactive in mitigating risk and have the appropriate insurances in place. Sleep easy! Although remember to review your protections regularly, especially as your business changes and grows.

Finding the right staff for the right roles can be a challenge for your business. Consider investing in a review of your organisational framework, and improving your human resources processes to improve retention and productivity.

Most of your team are aligned to the business vision, goals and are productive in their work. Remind all of your staff of the business vision, review the organisational framework, and ensure there is sufficient training and coaching for a happy and engaged workplace.

Your team is kicking goals and working in a productive and positive environment. Remember to reward top performers - have you considered an employee share plan?

The quality and timing of business information reaching you needs work. Consider reviewing your technology and processes to hone in on the sticking points.

The numbers look okay but you're not certain the data is always trustworthy. Do an audit of your technology and reporting to identify room for improvement.

Not only is business information reaching you effectively, but it's automated, easy to digest and always accurate. This is the fuel that runs a successful business machine.

Are you running your business or is your business running you? Remember to delegate, reassess and take control. Professional help is always just a phone call away.

You have some great weeks and some rough ones. Consider exploring technology to automate simple but time-consuming tasks, and training up staff to tackle more responsibilities.

Congratulations, you're winning! There's no greater feeling in business than feeling in complete control.

You struggle with unprofitable customers that are draining resources. Review your segmentation and price strategy to avoid over/under servicing your customers. Don't be afraid to reassess long-standing relationships and move on from legacy pricing.

Some of your customers are profitable and positive, but others are a drain on resources and the bottom line. Make a plan of action to focus on the cream of the crop.

Your customer base is helping you reach your revenue goals and stay in control. Keep it up! Now how can you increase acquisition with greater customer referrals?