Business In Difficulty: How To Assess The Health Of Your Business

Is your business healthy? It is getting you the kind of profits you planned for? Is the revenues generated in-line with your plan? Is everything in your business going according to the business plan? If the answer to any of these questions is “no,” then you need to assess the health of your business.

Advantages of Assessing the Health of Your Business:

By assessing the health of your business, you identify the weak spots of your business and improve upon them. Some of the benefits of assessing the health of your business include:

1) Analysis of the financial aspects of your business and coming up with ways to prevent losses.

2) Business analysis gives you a warning well in advance in case your business is headed for trouble.

3) You will come to know exactly how business advisors can help your business make a turnaround.

Procedure for Assessing the Health of Business:

1) Business health assessment will use both qualitative and quantitative assessment models.

2) A report is created that details the performance of your business and identifies weak areas.

3) You develop a business improvement strategy in consultation with a business advisor.

Business Assessment: Key Areas

Quick Business Assessment gives you just an overall idea of the health of your business, without going into the details. Some of the questions asked are:

o Do you have a vision for your company?

o Does your company have a business plan?

o Do all employees understand the vision for your company and work towards it?

o Is marketing a proper department in your company?

o Do you demarcate sales from marketing in your company?

o Do employees and managers understand your marketing goals?

o Do you know where the best markets for your products are?

o Is the supply chain to your business intact? Does it function smoothly?

o Is the quality of your products satisfactory to customers?

o Do you have a formal procedure for quality control checks?

o Are your products and services better than that of your competitors?

o Are your employees motivated enough to give good customer support?

o Are you able to retain the best people in your business?

o Does your company provide training and performance incentives to employees?

o Do you emphasize product development and innovation?

o Are your customers informed about the latest products you are offering?

It is best to assess the health of your business in the initial stages of business difficulty, rather than wait for things to become more critical. The faster you get to know exactly what is going wrong for your, the quicker will be the business recovery. You can consult a small business advisor to know more about business assessment for your business.