- Is your business “fit for business?” Here’s how to find out.
- What is a business health check?
- Why does your business need a health check?
- Get your business’ health checked
Is your business “fit for business?” Here’s how to find out.
As an entrepreneurial nation, Australians have embraced business ownership with more than 2.1 million businesses actively trading in Australia in an array of industries, as of the 2013-14 financial year.
This number highlights our have-a-go attitude and a confidence of business owners in finding ways to succeed and thrive.
However, dig a little deeper into these statistics and you will find that 60 percent of small businesses cease operating within the first three years of opening.
ASIC found in its 2011-12 report on corporate insolvencies the top reason for business failure was poor strategic management at 44 percent, with 40 percent having inadequate cash flow or high cash use and 33 percent suffering from trading losses.
These statistics shine the spotlight on the growing need for all businesses to conduct regular health checks, to not only critically assess the business’ profitability and viability but also empower decision making to safeguard long-term growth and sustainability.
What is a business health check?
A health check is the full diagnostic of a business. It starts with an evaluation of the current position of the business to provide an assessment of the critical elements affecting your business.
It involves the business owner being interviewed by a Penguin Management expert and answering a questionnaire together with further business financials and industry research.
This information is collated to give an external view of the business to highlight the areas that need change, and how to improve certain aspects of the business to bring renewal and growth.
Why does your business need a health check?
It’s not just struggling businesses that can use a health check. Healthy businesses can prosper from one as well, and here are 7 reasons why!
1. Identify Strengths & Weaknesses
Many business owners don’t think they need help. And they may be right.
But wouldn’t it be valuable to have an external expert give a critical eye to what you are doing and make further improvements to make your business stronger?
2. Spot New Growth Opportunities
Grow your business exponentially and make it more agile.
Look for new growth in your industry, other growth areas you had not considered or further growth in what you have already built upon.
Is your business ready to expand, or can it better prepare for this growth?
3. Offer an Objective View
An opportunity to look at your business from a different perspective.
Getting another perspective from outside the industry with business experience can provide constructive ideas to really ensure future success.
Perhaps, it’s time to protect your business as business environments constantly change.
4. An Expert To Call
Gives you an expert to discuss your business with, much like a business mentor.
Sometimes a business owner does not have anyone suitable to talk to about the business at a strategic level.
Employees are usually not appropriate, friends and work colleagues may not understand or be experienced, but a business health expert is trained to quickly assess your business and help with problems and changes for improvement.
5. Free up your time
Relieve you of the time-consuming tasks that drain your motivation and may be taking you away from truly engaging and strengthening every aspect of your business.
Introducing new technology is a great way to save time but with so much to choose from it’s hard to know which way to turn.
6. Set Business Goals
Refocus on the long-term goals you have for your business.
It’s easy to get caught up in the everyday problem solving, we lose sight of the reason and goals we had for the business, it’s time to get back on track again.
7. Reduce Business Risks
Cash flow, trade losses and bad debtors are top reasons for business failure.
These important aspects of a business are easily missed and pushed aside for other everyday tasks that distract us.
Don’t become a statistic.
Get your business’ health checked
A Penguin Management business health check will not only look at the areas that need improving but also the aspects of your business that are succeeding and how we can capitalise on this success. Are you ready to take the temperature of your business?
Getting a business health check is good for your health too. What is keeping you awake at night could be solved, the busyness of your day could be lightened – now isn’t that good for your health?
Please ask any questions you may have in the comments section or send us an email on firstname.lastname@example.org. If you would like to book a free initial business health check call us now on 1300 302 348.
Do you know a business that could benefit from a business health check? It’s easy to share with your business colleagues using the buttons below.
Did you know you could be eligible for a business grant from the Government to help grow your business this year? Check our business grants guide for some of the grants currently available. Hurry though, some have close off dates!
Xero is already a powerful cloud accounting platform to help keep track of your business’ accounts but its’ bigger benefits are when you begin tailoring it for your business through its library of add-ons & integrations – here are some Xero add-ons to solve the most pressing business problems.