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Financial Strategies - Concepts and insights to transform your business to become more profitable.

Business Health Check

Time for a Business Health Check

Reading time: 1 - 2 minutes

Caught in the economic downturn?

The key to operating a successful business and making money in an economic downturn or recession is to know where your business performs well and where it can improve.

The signs of a healthy business are sustainable profits and strong trading cash flows, whereas the symptoms of a business under performing and at risk of being infected by a recession or downturn, include declining sales with high fixed costs.

People who care about their health visit an expert - their Doctor.

Business owners who care about their business should similarly visit an expert - their Accountant (hopefully Cliftons) - to complete a business health check.

Prevention is better than cure!

To ensure your business remains healthy and continues to prosper in these uncertain times, you should undertake a business health check. A visit to your trusted adviser can protect your business from the full effects of a recession and better prepare you for recovery.

Consider the following questions, with a score of 1 to 5 ( 1 = Poor, 5 = Excellent);

  1. Have you segmented your customer sales to identify profitable products / services and risky customers?
  2. Do you use benchmarking to identify your business strengths and weaknesses?
  3. Does your debtors policy include discounts for early payment and personal guarantees for large customer accounts?
  4. Does your approach to managing staff include capping salary increases and paying performance incentives?
  5. Do you have systems and procedures in place to reduce the business reliance on you?
  6. Do your business protection strategies include adequate risk insurance?

Speak to Clifton Accountants today.

Make sure your business thrives, not just survives, into the future.

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