How to determine whether you have a healthy business and thoughts on how you can improve the health of your business.
So how do we judge the health of a business? The easiest and most obvious way is to look at the Financial results of a business. As a minimum, your business should be returning you more than 10% return on your investment.
After the financial check, you then need to review all of the other elements of a business. When we do a full health check on a business, we assess it through the following structure.
Environment, Structure Implementation and People
The Environment of the business is the critical element of this structure.
Get really clear on what your business is about. What is its purpose, mission, vision and what values do you want to ensure exist in the business every day. What is important to you in your business and you need to be consistent with those values with customers, staff suppliers, anyone who comes in contact with your business.
NEED TO PUT IN S & I
The last area of the business that needs to be assessed is the People. Do you have the right people in your organisation, are they in the right roles, how are they trained and how are they reviewed. People are the key to the strength and scaling of any business and if you have got it wrong in any of the first 3 areas then you will have a problem here.
This is how to assess the health of your business and how to look at your business in a more structured way to identify where the gaps are in your business. Closing these gaps will greatly increase the value of your business.
If you need guidance to grow your business or if you are planning to Buy or Sell your business