As the year winds down, it’s time to pause and take stock of your business.
Just like a regular check-up for your health, a Business Health Check helps you assess where your business stands, where it’s headed and whether you’ve achieved your GOALS.
Many businesses don’t realise that there are multiple ways to evaluate their company’s health – and not all involve financials.
A healthy business is more than just strong numbers – it’s about innovation, leadership development, sustainability and meaningful work for employees and customers.
So, as a business owner, you might be asking questions like:
- How do I know if my business is healthy or needs attention?
- What should I be checking?
- Or, what exactly does a healthy company look like?
But don’t worry. We have all the answers and tips you need.
In this article, we’ll discuss the concept of a Business Health Check – a vital process that helps you assess your business’ health, uncover potential issues and take proactive steps before they become bigger problems.
Whether it’s improving cash flow, enhancing operations or boosting employee engagement, we’ll cover the key areas that drive sustainable success and make you and your business for the coming year.
Let’s begin your Business Health Check.
Is your cash flow ready for the holiday season?
The end of the financial year can throw up some unique challenges, like:
- leave entitlements
- slower payments
- seasonal cash flow squeezes.
So how do you make sure your business is ready?
Here are a few things to keep in mind:
- Boost your cash reserves: Heading into the season, ensure you’ve got enough in the bank to cover at least two months’ worth of expenses, including salaries, holiday pay and those unending end-of-year bills.
- Get on top of debt collection: Are invoices going out on time? Are overdue accounts being followed up? NOW is the time to make sure your debt collection processes are watertight.
- Keep an eye on cash flow trends: Understanding how money moves through your business is key. This helps you identify potential shortfalls and take proactive steps to address them.
By preparing your cash flow in advance, you’ll make sure your business can weather the season’s challenges and maintain financial stability as you move into the new year.
Have you checked IN on your team and operations?
At LMS Advisory, we understand that a business’ health isn’t just about financials; it’s also about its relationships – with your clients, your people and your community.
After all, your employees are the engine that drives your business, and your clients are the foundation of your success.
A key part of a business health check is evaluating your Human Resources (HR) systems, including employee engagement, compensation and leave management.
How? Check these tips and assess your business after:
Line up everything for the holiday season
The end of the financial year can disrupt the best-laid plans, but with some preparation, you can keep things running smoothly.
- Have you planned your team’s time off? Avoid last-minute surprises by finalising leave schedules early.
- Notify your clients about holiday closures or adjusted operating hours to manage expectations and maintain professionalism. And don’t forget to send them a gift of gratitude for being a great client.
- Streamline your processes. Now’s a great time to pinpoint inefficiencies and fine-tune your workflows. A few tweaks could make a world of difference for the year ahead.
Assess your team’s performance
Your people are the heart of your business, so taking care of them is non-negotiable. Here’s how to include an HR review in your Business Health Check:
- Approve and plan leave requests to keep your operations seamless during the holidays.
- Are employment agreements and HR policies up to date? Now’s the time to make sure everything’s compliant.
- Are the right people in the right roles? Aligning talent with tasks is key to productivity.
- Encourage your team to take a break and recharge – it’ll pay off in the long run.
- Identify skills gaps and map out training opportunities for the new year.
A strong team is crucial to the long-term success of any business and by making sure your people systems are healthy; you can set your business up for sustainable growth.
Is your tech holding you back?
Now, let’s talk about business technology.
Technology plays a huge role in your business’ efficiency and growth. An essential part of a business health check is assessing whether your current tools are helping or hindering your operations.
Include this in the loop:
- Audit your software stack: Are your accounting, HR and project management tools still the best fit for your business? If not, consider upgrading.
- Integrate and automate: Make sure your systems talk to each other. Seamless integration can save time, reduce errors and keep your operations running smoothly.
As we know, tech is powerful when used to its full potential. So, make sure yours is aligned with your goals, while driving efficiency, innovation and future growth.
How well did you hit your goals?
Before jumping into your next period’s strategy, it’s essential to take a step back and assess how this year went. Reviewing your numbers is the first step – did you hit your revenue and performance targets? If not, it’s time to understand why and explore new approaches to improve.
The market or business environment may have shifted, so adjusting your strategy based on this new reality can access opportunities you may have missed.
PLUS, a close look at your budget is critical. Compare your actual financial performance to what you had planned:
- Where did you overspend?
- Where can you optimise?
This reflection helps you and your business make informed decisions for the upcoming year and provides insights into how to fine-tune your business for ongoing success.
Remember: taking the time to reflect on your past performance is the first step towards improving your future results.
After that, it’s time to reassess your strategy. With six months left in the financial year, it’s recommended to act fast to get back on track.
At LMS Advisory, we don’t just focus on numbers – we focus on helping you create actionable plans that turn your financial goals into reality. Whether it’s setting a realistic budget, adjusting your strategy or getting back on track, we’re here to support you through it all.
How are you doing? Yes, you as a person
Doing a business health check doesn’t just end with the business itself.
As a business owner, it’s easy to get caught up in the day-to-day grind, pushing yourself and your team to the limit. But taking care of your own well-being is just as important as your business’ financial health.
In fact, your energy levels directly affect the success of your business, so it’s important to check in with yourself regularly. Keep these in mind:
- Are you feeling drained and unmotivated or are you excited about the year ahead? If the latter, fantastic! But if you’re finding yourself exhausted, it might be time to take a step back and reassess.
- One of the easiest ways to free up your time and reduce stress is by delegating.
If you’re still handling tasks like bookkeeping or payroll, consider outsourcing these to experts, like LMS Advisory. This allows you to focus on strategic growth and gives your mental health the space it needs to thrive. - Streamline your processes by identifying tasks that can be automated or improved to lighten your load and maintain your energy.
Here at LMS Advisory, we focus on both your business’s health and your personal well-being. We aim to help you lead with clarity, making sure your business and mind are equipped for success.
It’s time to take charge of your business
A business health check isn’t just a checklist – it’s your opportunity to pause, reflect and realign. By addressing key areas like:
- finance,
- operations,
- goals,
- technology and
- HR
…you’re not just preparing for the year ahead; you’re setting your business up for lasting success and growth!
At LMS Advisory, we bring together financial expertise and a deep understanding of what truly drives business success. From cash flow strategies to financial goals, we’re here to support you at every step.
Ready to take control of your business’ future? Let’s make the coming year your most successful yet!
If you’re looking for more personalised help – speak to our team at LMS Advisory today.
Here at LMS Advisory, we take a comprehensive approach to accounting and business advisory, because we care about creating a holistic and meaningful financial experience for you – with you.
We take the time to get to know your business to provide you with the financial services you need today and the dependable financial advisory to support your goals tomorrow.
If you’re a proactive business owner looking for a partner who cares about your business and finances as much as you do, LMS Advisory is the firm for you.
For more information, visit our website or contact our team today
