What are business health checks and why are they so important for your business
Many businesses don’t realise that there are many ways to evaluate the health of their company, and not all of them involve money.
A business needs more than just a strong financial performance in order to thrive. It also needs innovation, leadership development, sustainability, meaningful work for employees and customers alike…the list goes on.
The question is, how do you know if your company is healthy or unhealthy? What should you be checking? And what does a healthy company look like anyway?
To answer these questions and more we will explore the concept of ‘Business Health Checks’ – an evaluation process that can help determine where your business stands so you can take corrective actions before it’s too late. Let’s get started!
Evaluate Your Business Model And Make Sure It’s Still Viable
The first step in a business health check should be to evaluate your business model to make sure that it’s still viable. This involves assessing the company’s strengths, weaknesses, opportunities and threats. By doing this, your business can make changes to its model if necessary in order to stay competitive and successful.
As part of this initial check, you should also do some competitor analysis and critically compare your offering to that of your rivals.
What Are The Different Areas That Are Evaluated During A Health Check?
So, what should you be checking during a health check? Well, that depends on your specific business. However, there are some general areas that you should always consider, such as:
A business health check will usually analyse a company’s financial performance. This includes an assessment of the company’s assets, liabilities, equity, income and expenses. The financial statement of a business can give you an idea of whether the company is making a profit or loss. It can also help you to identify areas where the company could improve its performance.
By evaluating the company’s processes, systems and resources and addressing any inefficiencies, a business can improve its overall performance.
By identifying any potential problems with its human resources, a company can make its workforce more productive and avoid any potentially damaging HR issues in the future.
Marketing And Sales
Evaluation of marketing strategy, sales process and lead generation techniques is essential in making sure that you are making the most of opportunities that present themselves to your business.
This includes an assessment of the company’s procedures, systems and resources. By identifying and addressing any inefficiencies, a business can improve its overall performance.
What Does The Process Of Conducting A Business Health Check Look Like?
The process of conducting a health check can vary depending on the business and the type of health check that is being conducted. However, some common steps are usually involved, such as:
1. Identify The Areas That Need To Be Assessed
Before you can start assessing the health of your business, you need to identify which areas need to be looked at. This will depend on the specific business and what you want to achieve from the health check.
2. Collect Data
Once you have identified the areas that need to be assessed, you will need to collect data in order to analyse them. This data can come from a variety of sources, including financial statements, surveys, interviews and focus groups.
3. Analyse The Data
After you have collected the data, you need to analyse it and use it to determine where your business stands. This means looking at all of the data together and determining its significance.
4. Create A Report
You should create a report that summarises your findings from the analysis process. The report should include feedback on what is working and what isn’t, as well as suggestions for how the company can improve.
Who Should Conduct A Health Check?
Any business owner or leader can conduct a health check on their own business. However, it is usually best to get an unbiased opinion from an external source, such as a consulting firm specialising in business health checks.
How Often Should You Conduct A Health Check On Your Business?
How often you should conduct a health check on your business depends on the size and complexity of your business, as well as the risks that are associated with it. However, it is generally recommended that you should conduct a health check at least once a year.
Call In The Professionals
If all of the above seems like too daunting a task to tackle on your own, don’t worry, help is at hand. Contact the professionals at Carbon Group via the contact form or call 1300 454 174 today to arrange a consultation. We have multiple offices in Queensland (Brisbane, Bundaberg and Gympie), New South Wales, Victoria, Western Australia and South Australia.