Running a business means it’s easy to get caught up in daily activity and lose sight of the big picture. Taking stock of your business health is essential.
Key Health Indicators
- Cash flow — do you consistently have enough cash to cover expenses, or are you always scrambling?
- Profitability — are your margins healthy? Is profit growing year on year?
- Debtor days — how long does it take clients to pay you? Over 30 days is a warning sign.
- Revenue concentration — does one client represent more than 25% of your revenue? That’s a risk.
- Employee satisfaction — high turnover is expensive. Are your team engaged and motivated?
- Compliance — are your BAS lodgements on time? Is payroll STP-compliant? Is super up to date?
- Systems — are your processes documented and efficient, or does everything rely on tribal knowledge?
The 5-Minute Health Check
Score each indicator from 1 (poor) to 5 (excellent). A total under 21 suggests areas that need attention. Under 14 means it’s time to get professional help.
We Can Help
Our team provides business health assessments as part of our advisory services. We’ll review your numbers, identify the weak spots and help you build a plan to improve.