business health check Archives - Hybrid Business Advisors

Ready For a Business Health Check?

Posted on by Joan Nowak

As we approach mid-year, now is a good time to re-energize and recommit to your success. Are you on-track to reach your goals? If not, take some time to re-evaluate your progress, adjust your plans and refocus your efforts.

Mid-Year Business Check-Up

A mid-year business health check can help you identify areas that need improvement or uncover opportunities to exploit.

Increased revenue covers up a lot of issues or gaps in a business. So it’s natural for owners to focus on sales improvements. But other areas impact results too — so don’t ignore them.

Revenue | Sales

A consistent stream and new and repeat business is important to overall profitability — so let’s start there.

Are sales higher than the same period last year?
Do you have a good balance of new and repeat business?
Is your average sale or transaction higher — or trending up?
Are sales efforts focused on higher margin products or services — think profit?
Are you generating enough leads — new or repeat business — to support your sales goals?

Operations | Service

A well-run business certainly increases profit. But it also reduces the daily stress that often comes with business ownership. Is continuous improvement really a priority? Let’s consider the following:

Do you consistently deliver what you promise, when you promise it?
Are rejects or reworks costing you time and money?
Can your business run without your day-to-day involvement — so you can enjoy time off and not skip a beat? Think systems and training.
Do you have the right people — employees, contractors, and suppliers — to support your business and customers?

Profit / Financials

As a business owner, profit is your reward for excellence in entrepreneurship. Are you and your business reaping the rewards?

Are you profit margins trending up or higher than last year?
Do you have the cash flow you need to continue to grow?
Do you know where the profit leaks are — and how to fix them?
Is your personal income growing? Does it reflect your value, effort and risk?

It’s never too late to set a new direction. Based on what you discover, make a few adjustments now and you will reap the benefits sooner rather than later.

For a comprehensive checklist to help you identify more hidden opportunities in your small business, click here to download my free Business Success Checklist.

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Get Refocused to Achieve Your Goals

Posted on by Joan Nowak

The summer is the perfect time for business owners to re-energize and refocus. We are more than halfway through the year. Many businesses see a slowdown. More family fun. So why not take some time to assess where you are and make the adjustments you need to achieve your goals and finish the year strong.

While you may instinctively know some of the shortfalls, take a look at all areas of the business. Consider both results and actions taken (or not taken) – because the doing part really matters.

Need help? My Business Success Checklist is a great tool to help you discover some of the hidden opportunities. Click here to download.

5 Question Mid-Year Health Check

#1 – Is revenue (sales) up, down or flat? What are you doing to get new business or help generate sales from existing customers? Do you have at least 3-4 proven methods to grow sales – and are you doing them consistently each week or month so you achieve your goals?

#2 – Are gross profit margins from products or services consistently high or trending up? Review pricing, costs and value. What changes, if any, are needed?

#3 – Is your business operating efficiently AND effectively? Are customers happy based on reviews, feedback or complaints? Is work done right the first time, every time? Is continuous improvement a priority for you and your team?

#4 – Do you have the right people – employees, contractors, vendors and strategic partners – to support your business? Are there clear goals and expectations? Do you have backups or ready replacements for all key people and/or suppliers? Can your business run without your daily involvement – or is everything dependent on you?

#5 – Is profit sustainable and cash flow positive? Is net profit higher than last year at this time? Is your debt similar or lower than last year – and being managed properly? Do you review financial reports, understand them and use the information to help you make decisions? Do you re-allocate resources (time and money) when opportunities arise – or miss out on them?

After you identify the gaps or opportunities, re-set your priorities. In other words, list the actual tasks or activities you need to do to achieve your goals and finish the year strong. Results come from taking action – so start implementing!

Still operating without a clear road map for success? It’s never too late to get started. My Ultimate Guide to Action Planning makes it easy. Download it today.

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Is Your Business On Track?

Posted on by Joan Nowak

We’re approaching the halfway point in the year. Now is a great time to take a step back, assess where you are and make the adjustments you need to hit those goals you set earlier this year. It’s time for a mid-year business health check.

Instinctively you may know where the shortfalls are. But take the time to evaluate all areas of the business before you start changing direction and re-allocate resources – time and money.

Here are some questions I use with clients to identify areas that need improvement or uncover opportunities to exploit. Answer some of these — then compare it to last year and/or the goals you set for this year.

Business Health Check

Revenue Mastery

Are sales higher than the same period last year? By how much?
How many new customers did you get?
What is your average transaction amount?
How many quality leads are you getting each month?
What is your sales conversion rate?
Have you lost any customers? If so, how many (and why)?

Product/Service Mastery

How are sales of new or repackaged products/services performing (if applicable)
What is the mix % for your key products/services? Are there any significant changes?

Operational Mastery

What is your revenue and gross profit per employee?
What is your labor as a % of sales?
Are customer satisfaction or feedback scores improving?
What is your quality % to date? Note: this reflects reworks or rejects
What is on-time delivery % to date?
How many customer complaints? What is $ value and % resolved by front-line employees?
What % of how-to-manual is complete?

Team/People Mastery

What, if any, employee turnover has occurred?
Do all positions have a backup or ready replacement (cross-training)
Do you have the right people to get the results you want? What skill-gaps, if any, exist?
Do you have the right suppliers (and backup) to meet your needs? How do you measure success?

Profit / Financial Mastery

What are your gross profit margins (%) to date?
Has cumulative cash flow for the year been positive?
Is your operating margin or EBIT higher than last year?
Is your business debt higher, lower or the same when compared to last year?

Once you identify the gaps or opportunities, set priorities based on what is most critical for your business success. Next, identify what you need to do (the actual tasks) to improve the results. Then start implementing!

More Profit Building Ideas

If you are looking for some ideas to improve your sales, marketing, service, team, profit and more, click here to download my 155+ Profit-Building Ideas.