Business health check | What makes a healthy business?
How healthy is your business? How do you even begin to measure its health and how frequently should you undertake a full physical of your company?
Here at Zervant, we have the answers to these questions and many more that will help you to appreciate the benefits of undergoing a business health check and investing in private medical insurance for your company.
You might not always receive a clean bill of health, but medical insurance is certainly better than an autopsy at the hands of a business coroner. It’s also beneficial to your mental wellbeing.
What is a business health check?
As the global business advisory firm RBNC states, a business health check “is a review of your entire business operations and is designed to find areas for growth, cost savings, more productivity, and better profitability in your business.”
Regardless of the industry in which your company operates or its size, all firms should consider taking a business improvement health check every few years to diagnose any potential business problems and ensure the company is meeting its objectives.
What does a business health check cover?
A business health check covers many areas, which can be overwhelming at first. However, several online business advisors and consultants are ready to offer help that suits your business.
Free online health checks, such as this one by the Newcastle-based firm Appleby Consulting & Coaching, take you through a series of questions covering:
- Business strategy and planning
- Sales and marketing
- Financial management
- Business happiness
Business strategy and planning
A business has a lot in common with the human brain, suggests Forbes, who compare the complex interconnected networks that ensure the free flow of information, ideas and operations.
Here are three questions for your brain to consider:
- Does the business strategy and business plan still align with your vision?
- Do you have enough time to realise your business plans?
- Do you have a clear idea of where your business will be in 3-5 years?
Sales and marketing
“Without air, the lungs can’t breathe, the heart and the brand stop and the brand dies. Therefore, no brand can sustain or develop in the long run without a strong sales force,” says Alain Dominique Perrin, former CEO of Cartier International.
To ensure your sales and marketing can breathe as deeply as possible, consider the following:
- Have your sales revenue and profitability increased over the past three years?
- Does your business have a unique selling proposition and is it understood by your team?
- Does your marketing make you stand out from competitors?
Customers can be the eyes and ears of your business. While feedback can be uncomfortable to hear, it can point your business in the right direction, states business website Gaining Goodwill.
Here are some questions you should contemplate about your customer base:
- Who are your ideal customers and are you able to understand their needs?
- Which of your customers are the most profitable and drive the success of your business?
- How do most new customers find your business?
Finance is the lifeblood of every business organisation. Without proper administration, no business enterprise can reach its full potential for growth and success, writes social publishing platform Medium.
With that in mind, ask yourself:
- Does your company stick to a clearly defined budget?
- Are there regular business cash flow problems?
- Is your bookkeeping up to date and are all invoices paid promptly?
Quality leadership, engagement and culture are the heart of the organisation, believes UK accountancy firm Not Just Numbers. It is the people who go above-and-beyond to build your business or even hinder its progress.
Here are three questions to get you thinking about the climate of your company:
- Does your business deliver personal satisfaction or business happiness?
- Does your team have the environment, resources and training to realise their full potential?
- Can every team member comfortably share business ideas and suggestions?
What is a healthy business?
There are a number of ways to measure business health. However, it requires both accountability and a modicum of objectivity that are difficult for the ego to sometimes handle. Remember that there is no shame in seeking professional advice.
As to the key components for a healthy business, we like the seven listed by chartered accountants Alexander & Co:
1. Concentrate on leading effectively
2. Make a (flexible) plan
3. Invest in the right employees
4. Don’t fear failure
5. Embrace the things you’re good at
6. Be a master in effective communication
7. The importance of learning and evolving
Here at Zervant, we know that if you are a sole-trader business, your health and wellbeing is important. A healthy business does more business, which means you will have more clients to invoice using our free invoicing software.
We also believe that every business should undergo a regular physical and we hope that our guide has encouraged you to search for one of the many free online business health checks.
If you have any questions about Zervant or online invoicing, please get in touch and we can help you!
Looking for more tools to nurture a healthy business? Try Zervant’s free invoice templates or our free invoice generator.