Does your business need a health check?

June 15, 2019 | INSIGHT

Most people hate going to the doctor. You know something doesn’t feel quite right, you’re not sure if it’s in your head but you keep putting off the appointment.  Usually that’s because a) you’ve managed to convince yourself it’s a brain tumour (thanks Dr Google) or b) you’re worried that it really is nothing and you’re going to sound silly.

I find the reluctance for business owners to get a health check on their business runs along pretty similar lines.

They are worried that there is something seriously wrong with the business and are scared to confront the issue.  The reality is that 38% of small businesses in Australia fail within the first four years* so it’s not an unreasonable concern.  However, this doesn’t have to be you.

And the likelihood is, that if you are focused on this as a concern you may already be avoiding some of the pitfalls.  Nevertheless, you are chewing up a lot of energy on worrying about it.  Wouldn’t it be better to know if there is something wrong so you can fix it or better yet get confirmation you are on the right track so you can redirect that energy to more productive areas.

Business health checks are quick and painless.  The aim is to evaluate your business and specifically

  • its strengths and weaknesses
  • understand your key drivers, what really makes your business tick
  • understanding the key risks to your business, macro and micro
  • identifying new growth opportunities
  • its financial health
    • Cashflow (still the number one business killer)
    • Cost structure (opportunities to fight the flab)
    • Revenue pipeline and opportunities (are you getting the right nutrition)

Wouldn’t you like to know if you’re fighting fit?

*ABS review of businesses started in 2011 which were still in existence in 2015