The Business Health Check is designed to review a company’s health, from top to bottom, to ensure it is in good shape to face the challenges imposed by growth or by rapid changes in market conditions. The best growth plan in the world will not succeed if the foundation that it is built upon is not as strong as it can be. Just as your doctor would recommend a physical prior to starting a bodybuilding program, this assessment will help ensure that your business is ready for rapid growth. It covers 12 key areas:
1. Mission, Vision and Values
How clearly articulated are your company’s Mission, Vision and Values? Is it well understood by your team? Are the actions of team members congruent with your Mission, Vision and Values? Do you have a cohesive strategy for growth? Is it well communicated throughout the staff and team members?
2. Corporate and Legal Structure
If a corporation is not kept in good standing with its incorporation, operating agreement, minute book, etc., the liability protection of the corporation can be diminished or lost.
3. Financial Health and Credit Review
What is the present state of the company’s finances, Income Statement, Balance Sheet and Cash Flow? Will the company be able to raise the money needed to grow and fund its working capital needs?
4. Sales Process and Sales Management
Does the company have an established process for generating leads and converting leads into sales? Can management predict future sales based on current performance indicators? Is there a plan for hiring, and training sales people and sales managers?
5. Management and Employee Relations
Does the company have the talent it needs to succeed now and in the future? Can the company recruit and retain the talent it needs to grow? Is there a plan to train and develop the best people so that they are able to reach their full potential? Do we provide them with timely feedback on their performance? Are the rewards in line with the industry and best practices?
6. Markets and Competition
How well does the company know its customers? Is there concentration in one customer/industry/etc. that could be a concern? Are the product/service offerings clearly shaped toward the key demographics and psychographics for each customer segment? How is the company positioned vs. competitors & substitutes? How was the pricing decided on? Is the company selling through the right channels?
7. Products and Production
How are sales & profits distributed amongst the products? Are products/services seasonal? Are improvements available in lead-time, on-time delivery, or quality? How do features & benefits compare vs. competition and substitutes?
8. Intellectual Property
Is the company protecting its intellectual property fully? Does it have a process for identifying and registering trademarks, copyrights and patent disclosures?
9. Material Contracts and Agreements
Does the company have long-term contracts with key employees, suppliers and customers?
10. Regulatory Compliance
Is the company in compliance with all applicable laws and regulations?
11. Tax Status
Is the company in compliance with tax laws and making payments on-time? Are all reasonable efforts being made to lower tax liability?
12. Insurance
Does the company have all prudent risks covered? Does coverage overlap? Are premiums competitive?