business health check Archives - Hybrid Business Advisors

Ready For a Business Health Check?

Posted on by Joan Nowak

It’s almost mid-year. It’s a good time to re-energize, re-evaluate and re-focus your efforts. Are you on track to reach your goals or is it time to make some adjustments? Time to do a mid-year business health check.

Mid-Year Business Health Check

A mid-year check-up can help you identify areas that need improvement. It can also uncover some previously overlooked opportunities. While it’s natural for business owners to focus on sales results, other things can impact the overall success of your business too. So let’s take a whole business approach.

Revenue | Sales

A consistent stream of new and repeat business is essential to overall profitability, so let’s start here.

Are sales higher than in the same period last year? Is your average transaction trending up?
Are your sales efforts focused on your higher-margin, more profitable services?
Are you generating enough new or repeat business leads to support your sales goals?

If the answer is no, then it is time to re-think your marketing and sales efforts. Are you using the right tactics and tools? Are you consistent? Do you have a sales process that converts and generates repeat business too?

Daily Operations

A well-run business certainly increases profit. But it also reduces the stress that often comes with daily issues and problems. A well-run business is a combination of people and systems working well together. So 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? Do you fix problems or band-aid them?
Can your business run without your day-to-day involvement?
Do you have the right people — employees, contractors, and suppliers — to support your business and customers?

If the answer is no, then it is time to emphasize this area of your business. Having quality systems and strong people to run them will make your business more profitable, less stressful, and more fun!

Profit and Cashflow

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

Are your 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 income growing? Does it reflect your value, effort, and risk?

If the answer is no, it’s time to dive into those financial reports and look at the margins and trends. How do yours compare to other businesses in your industry or similar industries? A little number crunching and comparison can go a long way.

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, download my free Business Success Checklist.

Need Another Set of Eyes?

Sometimes another set of eyes can help you uncover a lot more opportunities. Are you ready to work with a coach to solve your frustrations and leverage your business? Then let’s talk. Click here to schedule a discovery call today.

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.