To ensure that your business continues to grow and moves closer to your goals, you must conduct a business health check regularly. Whether you are just starting or you are an established business that is looking for growth, you must conduct a business health check. It will help you identify your key strengths and weaknesses and the areas that need improvement. It will help you understand your customers and employees and determine if their demands and needs are being met. Just as it is important to conduct body check-ups to identify any illnesses, a business health check provides the same benefits and will help you determine which areas in your business require quick treatment and solutions.
Some of the elements involved in a Business Health Check are as follows –
1. External Elements
A business health check of external elements will help determine how well the business is faring when it comes to factors outside of its control. These could include elements such as how it is dealing with competitors and where it stands in terms of the competitive market. It could include the business environment and how well the company is merging itself into the business environment. It could also include the technology impacts to understand if the business is keeping up with the new and advanced technologies available for smarter solutions.
2. Business vision
The health check will help you understand how far along you are in meeting the visions and goals of your business. Whether you are starting your business or you have an established business, you would have set visions and goals to meet as per the timeline. Knowing where you stand is important to make further plans for growth and improvement. It will help you see where you might lack manpower and resources and what steps to take to increase productivity and move closer to your goals.
3. Identifying the Right People
In the initial stage of the interview and hiring process, it might not be easy to determine whether the person employed is right for the job assigned to them. By conducting a business health check-up, you can assess how well the employee has fared at his job and whether he is best suited for the role or would he be more productive in a different vertical. It will also help to know what the employees feel about their job, their level of motivation, and satisfaction as this greatly affects the business environment and overall productivity and growth.
4. How does it affect your revenue?
Business health checks will help you keep up with your revenue plan. Check how is your business faring, and how close you are to hitting the target. These are some questions that can be answered through the business health check-up. You can call for a meeting to understand the sales and marketing data and what opportunities are being missed or what strategy is working best. By identifying these key points, you will be able to keep in line with your revenue and move closer to meeting your goals.
5. Meeting demands
Conducting a business health check-up will help you identify the demands in the market and find out if your products are meeting the demands. You can start by estimating the size of the market, researching prices, and checking up on the competition. Having detailed information on the demand and sales and the gap between the two will help you understand to what extent the demands are being met and if there is a need to increase or decrease the production.
6. Bookkeeping, expenses, and receivables
Small and Medium Enterprises (SMEs) need assessment to understand where their expenses and receivables stand. It will help them get familiarized with their bookkeeping process and understand if the current system in place works for the organization or business. It will also help them determine their expenses and if there is any unnecessary outflow of cash. A close watch should also be kept on the receivables to ensure that your customers are making timely payments for their bills. Closely monitoring the bookkeeping, expenses, and receivables will help you make a better budget for the near future.
Business health checks are needed by every organization or business whether it is new or already established. The health check-up determines external elements, how far along the visions and the budget goals are being met, if the right people are employed and if the sales are meeting consumers’ demands. All these elements will help you as a business owner to identify key areas that you need to work on for a better future for your business.
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(Businesses with INR 25 Cr+ revenue and employee strength ≥ 100, intent to grow 10x and a commitment to learn can apply)