The Benefits Of A Business Health Check
Many brand owners are often too busy working "in" the business instead of "on" it, which is why a business health check is crucial for hitting long term goals.
We take the time to regularly check the mechanics of both our bodies and our cars, but what about our businesses? When you’re in the thick of it, sometimes it can be difficult to determine if your brand is performing at it’s best - which is where the assistance of an unobjective, third party professional can prove to be invaluable.
Understanding The Concept Of A Business Health Check
Having a ten year plan in regards to your business goals might seem both daunting and time consuming, especially if you’re just starting out. If you have a clear plan of attack as to how to actually hit those goals, then it may actually help to get you there faster. While this sounds wonderful in theory, staying on task and being held accountable for these targets is often where many business owners come unstuck.
Thankfully, conducting a business health check with an industry professional can be a game changer when it comes to evaluating your goals, identifying any problems within the business, and spot areas for potential growth. In short, a business health check can be referred to as a current and comprehensive evaluation of how all aspects of your business are performing.
What A Business Health Check Involves
Usually administered by an experienced business coach, adviser or planner, a business health check involves carrying out a set of diagnostics via a series of questions that relate directly to your brand or business.
After a careful review, the coach will then deliver the results to the brand owner in a report format, before scheduling a follow up meeting to discuss what future actions may be required in order to improve the overall performance of the operation, along with agreed upon time frames to implement said changes.
The process of conducting a business health check is actually quite straightforward, and usually assesses the following core pillars that apply to just about any brand or business, regardless of the sector or industry.
External Elements - This section relates to circumstances beyond the brand’s control, and can include industry, business environment, technology, peers and competition, customers, and the dynamic between shareholders.
The Brand Vision - In relation to the brand’s overall long term goals, your coach will assess your objectives, strategies and plans in place when it comes to hitting those goals. This also includes any potential road blocks or barriers you might face in achieving them.
Business Structure - While this may depend on the nature of your brand and the legalities involved, is your operation set up in the appropriate business structure that best benefits you in terms of profit shares, tax obligations and succession planning?
Sales And Marketing - By addressing how your new and existing customers manage to find your business, you’re also identifying the most cost effective return on investments when it comes to the sales and marketing division of your business.
Production And Logistics - This section assesses whether you are sourcing, producing, delivering or managing your goods and services in the most effective and efficient manner, along with ensuring that brands are maintaining high quality and consistency in the supply.
Accounting And Cash Flow - The bookkeeping, record keeping, accounting, financial systems and ultimately cash flow management are one of the most important aspects of running any business, so there’s almost always room for improvement here.
People And Human Resources - How are you locating, training and managing the people working in your business? Will you require more or less staff in the future, and who is going to do what? Assessing your policies and procedures in place helps to plan ahead for success.
Are You Ready To Schedule A Business Health Check?
If understanding the legalities that surround your business or finances isn’t your strong point, then it may be reassuring to know that you’re not alone. In fact, many businesses (big and small) enlist the services of an accountant in order to free up their time while knowing that their financial obligations are already taken care of by the professionals.
Ultimately, the team at Muro believe that every business owner is an entrepreneur. However, accounting does not discriminate - finances break down barriers and are not territorial. If you would like to take a deeper look into your finances or conduct a professional business health check, please get in touch with us at Muro today to ensure that you’re on the right path for success.