Assessing the health of your business

What constitutes a "healthy" business? When you set out to assess the health of your business, you need to look through a wide lens and capture the entire picture. A periodic business health assessment should be a staple of your ongoing business planning cycle. A proper assessment will help you to determine the direction of your business, moving forward.

When assessing your business, there are a number of questions you'll want to take into consideration. Keep your answers honest and accurate — it's imperative that you create a true picture of your business. Once you've answered all the questions, take the time to determine where your deficiencies lie. Whether you're constantly chasing your customers for payments or you find that you're spending a large amount of time and resources on equipment repairs and maintenance, addressing your deficiencies is the first step towards the coveted "clean bill of health".


Your business is a direct reflection of who you are. Examine your qualities, both positive and negative, and determine your impact as a leader and manager.

Your employees

Employees are the lifeblood of your business. Make sure that you recruit and manage your employees with a focus on organizational vitality.

Your management team

Ideally, your management team works well as a unit towards fulfilling your vision for success. Great management teams boast members with diverse skills that complement one another. Analyze your team and determine its value to your business.

Your market

A viable market makes your business profitable. Review your sales patterns and recognize the areas in which you've flourished and floundered. Examine new possibilities for growth.

Your accounts receivable

Offering credit to your customers can act as an incentive for them to make larger purchases. It can also attract new customers, but extending it does not come without risk. If you do offer credit to your customers, ensure that you take every measure to minimize your personal risk.

Your competitors

If you run a successful business, you will always have competitors who want a share of your market. Rather than fret over competing businesses, examine them and use your knowledge to determine where you can make improvements.

Your products and services

You are what you sell. Take the time to analyze how each of your products and services perform in the marketplace. Remember, each product and service that you sell is only an asset if it brings value back into your business.

Your marketing strategy

With the wide range of media at your disposal, it's important to recognize the marketing streams that best attract your customers. Evaluate the methods you currently use, and examine new marketing strategies to determine the most effective approach.

Your suppliers

You depend a great deal on your suppliers. Your management of supplier relationships can deeply impact the efficiency with which you do business.

Your finances

As a business owner, it is absolutely crucial that you effectively manage your finances. Keeping detailed financial records and accurately forecasting future cash flow will allow you to keep a firm handle on where your business is and where it is going.

Your equipment

The right equipment for your business can increase productivity and, therefore, profits. On the flip side, inefficient equipment can slow or halt production and drive profits down. Examine your equipment needs carefully and research the best options for your business.

Your location

The location of your business should not only allow you to thrive in your current situation, but should also offer you room to grow. Don't let your location prevent you from achieving your business goals.

Business health resources

The following sections of our website will help you assess and manage the health of your business.


Share this:


Government Activities and Initiatives