Business Health Check-up: What Is It and Why Do You Need It?
Summary: Analysis of your firm today is imperative to ensuring its success tomorrow; Washington BBI’s Business Health Check-up will perform an assessment of your firm and offer informed direction as you work toward achieving your goals.
Last week the news services reported startling results of a recent study, suggesting there is little medical value to annual check-ups. However, some reporters noted that the annual visits may help to build a relationship with the doctor which could be imperative later in the event of something catastrophic occurring.
What about a health check-up for your business? Are you taking the time to check your firm’s key performance indicators? When is the last time you “spread” your firm’s financials to conduct ratio analysis, looking for leading indicators of problems or confirming great performance in the core areas of your business?
Many small business owners do not know how to perform a check up on their firm’s health themselves, nor do they monitor their key performance indicators on a monthly basis. Owners of larger business have internal and external staff that, in part, are supposed to keep an eye on these indicators.
If you are a small business person, the odds are that you don’t have the staff to provide this service, and you are left to either perform the analysis yourself, hire someone with knowledge needed to do it, or simply ignore performing the check-up at all.
This latter issue, ignoring the need for regular business health analysis, is akin to driving a car forward while waiting for feedback the following April on whether or not you survived, i.e., made any taxable income.
Rather than crash your firm, you might want to get a health check-up for your firm. Who would you go see for a business health check-up? If your firm is too small to have a Chief Financial Officer, or if you want to keep that CFO on their toes by engaging an outside firm, then you might consider hiring a CPA or a temporary CFO services firm.
Or, for less money, you can engage Washington BBI to conduct a Business Health Check-up.
Washington BBI’s Business Health Check-up provides a high-level analysis of your firm’s health. Using your firm’s financial statements and other documents, Washington BBI will perform a Business Health Check-up, including:
- Overview of financial performance
- Key performance indicators
- Evaluation of the readiness of your business for sale
- Suggestions for additional management attention
- Ballpark estimate of market value
- Indicators of glaring issues or missed opportunities
Every business needs an annual Business Health Check-up. Whether the benefit for you, the owner, is peace of mind or an early alert of issues requiring your attention, the Business Health Check-up provides a simple, lost-cost overview of your firm’s financial status, key performance indexes, salability, comparable value, and surface issues.
To begin the check-up, you provide Washington BBI with the raw data, typically print-outs from your accounting software. We input this data into our analysis tools, compare your firm’s performance with industry averages, and note any areas of concern that require your attention or intervention.
The deliverable is a one page summary of your firm’s performance, including some key performance indicators, a ballpark estimate of the market value of your firm, and suggestions for further follow up when issues or opportunities seem to warrant your attention.
Would you like a scorecard of your firm’s performance? Would you like to make better decisions by knowing how your company compares to the industry? If so, call contact Washington BBI now at WashingtonBBI@gmail.com.
About: Since 2001 Washington BBI has helped owners of small and mid-sized firms in Western Washington to build benchmark performance, create sustainable profits, exit plan, and buy or sell firms.