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Free Business Health check - Business101


									                                                                                        The Comprehensive Business Risk and Value Driver Assessment
                                                                                        Step 1: Complete the self assessment
                                                                                        Step 2: Check performance overview                                                                   
                                                                                        Red indicators requires urgent attention to increase business performance and Yellow
                                                                                        indicators are alerts for areas of the business requiring attention
                                                                                        Contact Business101 for assistance email
                                                                                                                                                                                                    Performance Overview
                                                                                                                                                                                   SUCCESSION AND ESTATE PLANNING
Client Name:
Date:                                                                                                                                                                              CUSTOMERS AND MARKET DEMAND
                                                                                                                                                                                        MANAGEMENT INFORMATION…
                           How would you rate the following in your business?                                                                Click on arrows to respond.                               COMPETITION
INDUSTRY                                                                                                                                                  0                                            BUSINESS RISK
Business operates in a well established, stable industry                                                                                                                       1                  BUSINESS GROWTH
The industry / market is growing                                                                                                                                               1            BUSINESS PERFORMANCE
Business likely to be negatively influenced by industry restructuring                                                                                                          1                           INDUSTRY
Business likely to be influenced by negative global trends                                                                                                                     1
                                                                                                                                                                                                                       0%   20%   40%   60%   80%   100%
Future industry trends will positively affect the business                                                                                                                     1
BUSINESS PERFORMANCE                                                                                                                                      0
How many years profitable trading does the business have?                                                                                                                      1       Indicates a problem
Current year increase in sales                                                                                                                                                 1       Means Caution
% current year increase in gross margin ($)                                                                                                                                    1       No problems
Current year increase in wages a % of sales                                                                                                                                    1
Current year increase in adjusted EBIT                                                                                                                                         1                         10 Key Success Factors
Current year improvement in liquidity (debtors collection, stock turnover etc)                                                                                                 1
Business achieving key industry benchmark standards (profit, liquidity etc)                                                                                                    1       INDUSTRY                                                0%
Ability of business to control its operating costs                                                                                                                             1       BUSINESS PERFORMANCE                                    0%
BUSINESS GROWTH                                                                                                                                           0                            BUSINESS GROWTH                                         0%
Opportunities for business growth exist – existing markets worked harder (and are able and practical to be pursued)                                                            1       BUSINESS RISK                                           0%
Opportunities for business growth exist – new products/ services (and are able and practical to be pursued)                                                                    1       COMPETITION                                             0%
Opportunities for business growth exist – new geographical locations (and are able and practical to be pursued                                                                 1       MANAGEMENT INFORMATION SYSTEMS                          0%
Business has continually invested in research and development                                                                                                                  1       OWNERS                                                  0%
Plant & equipment in good working order and able to meet future demand                                                                                                         1       CUSTOMERS AND MARKET DEMAND                             0%
Premises – ability to support growth                                                                                                                                           1       STAFF                                                   0%
Formal Business Plans (inc. SWOT, Growth, Budgets, Strategic Plan, Marketing Plan etc) exist and are actively managed                                                          1       SUCCESSION AND ESTATE PLANNING                          0%
BUSINESS RISK                                                                                                                                             0
Cost of supplies is subject to inflationary pressures and/ or exchange rates/ fuel prices
Customers are located in depressed geographical region                                                                                                                         1
Does Government legislation protect the supplies you make?
Products/ services threatened by imports
Insurance management – policies are adequate and current (Work Cover, PI, General Insurance, etc)                                                                              1
Product/ services threatened by new technology, IT or web
Last 5 years: number of legal claims > 1% of that year’s income
Premises – where location is important, tenure is secured
How many times has input supply disruption negatively affected your business in the last 12 months                                                                                                  Performance Overview
Supply is concentrated to a small number of suppliers
How reliant is the business on its major suppliers                                                                                                                                 SUCCESSION AND ESTATE PLANNING
Do suppliers determine what products and services you offer                                                                                                                    1                               STAFF
COMPETITION                                                                                                                                               0
                                                                                                                                                                                   CUSTOMERS AND MARKET DEMAND
Existing competitors are aggressive
Increased competition from national competitors is a real threat
                                                                                                                                                                                        MANAGEMENT INFORMATION …
Increased competition from overseas competitors is a real threat
The market can sustain the current level of competition
                                                                                                                                                                                                       BUSINESS RISK
New competitors have high financial start up costs
                                                                                                                                                                                                  BUSINESS GROWTH
New competitors need special skills/ knowledge
                                                                                                                                                                                            BUSINESS PERFORMANCE
Other barriers to entry exist for new competitors
Competitors have access to greater resources than you
                                                                                                                                                                                                                       0%   20%   40%   60%   80%   100%
MANAGEMENT INFORMATION SYSTEMS                                                                                                                            0
Do you operate computer based accounting and/ or management reporting systems?
Do your systems report on sales, cost of goods sold, employee and profit by major product/ services category?
Policies and procedures exist for at least monthly reporting
Existence and use of best practice operating system
OWNERS                                                                                                                                                    0
Degree of principal/ owner reliance
Easy transfer business knowledge, IP, systems etc
Principal/ owner departure will cause loss of key customers
Principal/ owner departure will cause loss of key staff
Business culture of balancing work and non-work activities as part of a healthy life balance for owners, principals and staff
CUSTOMERS AND MARKET DEMAND                                                                                                                               0
Top 10 Customers: % of Total Income
Degree of customer loyalty                                                                                                                                                                          Performance Overview
Percentage of customers that generate 80% of profits
Substitutes exist for your products/ services                                                                                                                                      SUCCESSION AND ESTATE PLANNING
Describe the nature of the products/ services that you provide                                                                                                                                                 STAFF
Effect on income if key customers sold their business                                                                                                                              CUSTOMERS AND MARKET DEMAND
How would a 10% increase in your prices affect demand for your products/ services                                                                                                                            OWNERS
STAFF                                                                                                                                                     0                            MANAGEMENT INFORMATION …
The industry is losing staff to other industries                                                                                                                                                       COMPETITION
Staff appraisals confirm commitment to organisation goals and visions                                                                                                                                  BUSINESS RISK
Key staff experience and industry knowledge                                                                                                                                                       BUSINESS GROWTH
Formal strategies for staff recruitment, retention and motivation                                                                                                                           BUSINESS PERFORMANCE
Staff retention history                                                                                                                                                        1                           INDUSTRY
Formal communication within business                                                                                                                                                                                   0%   20%   40%   60%   80%   100%
SUCCESSION AND ESTATE PLANNING                                                                                                                            0
Risk insurance (Life, TPD, Key Person etc) for principals/ owners and relationship partners
Documented business life plan
Documented succession plan
Documented estate plan                                                                                                                                                         1
Surplus capital exists for future growth and succession
Strategies in place to protect, grow and realise optimal business value
Business is easy to sell                                                                                                                                                       1

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