If your business generates less than $10,000,000 in annual revenue and don’t have a CFO (Chief Financial Officer) or senior Controller you may want to consider getting a FREE Business Health Check. Why? Because in our experience, most businesses that fit this profile have never looked at the 5 most common financial measurements for their business. In understanding how healthy your business is, you have to consider both a balance sheet and an income statement (or profit and loss statement) to see the whole picture which our FREE Business Health Check can do for you.
While most small business owners look at their income statement and have memorized their gross revenue and maybe their net income, looking at their balance sheet is another story. When a business feels the pain of not having cash it can be difficult to specifically understand what is causing the shortage. A quick look at a balance sheet might show them that their accounts payable is greater than the accounts receivable. Items like payroll deductions, GST and other “legacy” payables can really strain cash flow. It’s not to say that a business is not profitable but rather that they need a plan for dealing with the cash problem. A plan for dealing with the cash problem would be a reflection of knowing what is causing it. Getting a FREE Business Health Check could help identify not only the source of the cash problems but could also provide direction on potential solutions.
In a case where a business is looking to payout an existing partner or owner, a FREE Business Health Check could help point out the areas of the business that need to be addressed or planned for before approaching a bank or lender for a loan. As well, the business may choose to make strategic decisions based on the results of the FREE Business Health Check that it may not have considered or thought of previously that a bank or lender would want addressed before providing financing.
In our work with clients to help them find financing, we spend time not only looking at where the business is currently but more importantly where it wants to go. There can be a disconnect between where a business is now and where it wants to go as a result of a business plan that is driven primarily from top line revenue instead of including some basic financial markers that can help guide a business as it goes. Our FREE Business Health Check can help an SME business understand where it is now and where it needs to be which should be part of the business planning process.
Entrepreneurs and business owners by their very nature are creative individuals who know how to solve problems. Getting a FREE Business Health Check may provide you with insights into your business and more importantly what needs to be fixed or improved in order for your business to do more.