SME Adviser Series: Conducting a business health check
29 Nov 2017
As an SME business owner, once your business is established and running it may be tempting to allow things to continue as they are, focussing on the day-to-day management of your business, and keeping things ticking along. But once you have been in business for a while, it can pay dividends to think about longer term and more strategic planning.
A business health check is a chance to stand back and take stock. It enables you to assess how well your business is performing, highlighting your strengths, reassessing the factors that determine future business performance, and outlining any areas for improvement.
A thorough business health check will look at all aspects of your business and ask some key questions which are essential for future success:
- Do you have a business plan, is it working for you, and when last was it updated?
- Is your marketing strategy aligned to your business objectives?
- Does your income exceed your expenditure? Are you keeping a close eye on your direct costs? Are your management accounts providing you with the information you need to run your business? Do you have any concerns about making payments to suppliers because you do not have the necessary cash or overdraft facilities? Are you up to date with your tax payments? Do you need additional finance?
- Are you maximising the funding opportunities available to you such as R&D tax credits, cash back for innovation?
- When last did you complete a competitor analysis? Are you cost competitive? Are you providing the right products or services? Are you on top of relevant industry developments?
- Is your management structure working for you?
- What measures can you take to improve productivity?
- Are you ready to grow your business?
- Are plans in place now to maximise your business for future exit?
- Have you conducted a SWOT analysis, identifying your strengths and weaknesses, opportunities and threats? What are the mitigating circumstances and the defensive actions you are taking?
All these questions and more are crucial when considering how best to improve both the day to day performance of your business, as well as the longer-term outcomes.
At Beavis Morgan we work with businesses across a range of industries, helping with strategic planning, business turnaround and improving business performance for the future.
We regularly conduct business health checks on behalf of our clients. It is a painless process, which we tailor to your individual business needs.