As the season’s change, many of us perform spring and fall cleaning at home. Business owners should commit to a review of their business position and reflect on what is going right and what is not working. A business assessment helps to achieve goals and grow or maintain business strategically.
The first step in a business assessment is an evaluation of the current business model.
- Is the model relevant?
- Is the value proposition relevant?
- Has the customer relationship changed?
- How is employee turnover?
- Are the key performance and business indicators measured valid in the “new normal” or is an adjustment indicated?
The second step relates to the financial health of the company. This includes a review of cash flow, operating expense, run rate, and cash burn rate. Business owners should examine payables and receivables to forecast cash flow and access the need for cash.
Run different scenarios that might occur that could impact cash flow. The scripts should include forecasting sales, expenses, and modeling cash flow. In this assessment, consider impacts on cash flow, e.g., negotiating deferred payments for leases and payments to suppliers. Other scenarios could include product and service packaging, promotions, and pricing.
While a strategic focus on business is critical, losing sight of the people and customers that keep the business running is as important. In terms of health and safety, is the business compliant with city, county, and state regulations?
Are you staying up-to-date on changes to policies and procedures? Have health and safety policies been created to guide employees and customers? Are you communicating regularly and frequently with employees and customers? Customer experience and satisfaction are critical success factors for business leaders.
Bonnie Davis is a strategic business analyst, project manager, and certified quality expert. She has owned and operated her own business and presently works for a Fortune 100 company.
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