Regardless of whether you feel fine or not, regular health checks with your GP are essential. As adults, we’re urged to seek these regular reviews of our full body health to anticipate or prevent health issues down the track. The older we get the more vital it is to stay on top of these things. The same goes for your business. You wouldn’t put your health on the backburner, so keeping your business’ health in check should be just as a high of a priority.
It’s these indispensable health checks, body or business, that provide an easy way to spot potential problems before they happen. And when your hard work is at stake or you’re building a small business empire, skimping on periodic checks can be a recipe for disaster. Not to mention, the financial and business risks you expose yourself to in the process.
Regular business health checks are a vital ingredient in taking control of your business. It’s not just about managing risks and funds either, but streamlining the way you do business to boost profits and productivity too. Here are the business health checks you should perform periodically to help drive success and encourage a long business life.
Health Check Reporting Capabilities
To understand how your business is performing and ensure future success, run through the way you report at least once a year. Reporting capabilities through software like MYOB Exo are constantly updating, so you want to make sure you’re taking advantage of everything it has to offer. These reporting capabilities can help you get a better health check of your business by highlighting all key areas to focus on as a business owner.
Accounting, point of sale, job costing, payroll and stock control are all important parts of your business to report on. All of these can be health checked through MYOB Exo and require a periodic review to confirm things are running smoothly. Such health checks through MYOB reporting can identify unpaid invoices, improve the efficiency of business activities such as audits and compliance checks and assist in retaining customers.
Manage Business Risks
Every business, regardless of its size, comes with its own set of risks. Whilst you want to find ways to manage these risks on a regular basis, regular health checks are effective in devising sound strategies to prepare for the worst-case scenario. Start by checking the health of your business portfolio to gain a comprehensive insight into how your business is doing. This will allow you to identify any risks and act fast to defuse them before they grow into something bigger and more costly.
Managing business risks periodically is also a great opportunity to manage new buyers. With new customers come new risks you need to be prepared for. Use your periodic risk management to monitor buyers and review any negative changes. Implement security measures and tracking systems to safeguard customers paying invoices on time and track incoming quality by comparing new customers with existing. This is a great tool for attracting and retaining customers too, which is an essential part of managing risks.
Boost Financial Health
Every successful business owner is always on the lookout to boost their financial health. To keep business funds rolling in, it’s vital to review your budget on a regular basis. Financial health checks are the most essential to review, to determine your economic position in the industry and confirm whether your goals are still strongly aligned.
Health check against revenues, profitability, cash flow, liquidity and stock turnover to evaluate your financial health. This is a good time to review your revenue goals too, both monthly and annually, to ensure you’re making progress towards meeting them. A realistic budget must be in place to predict fixed and variable expenses. The sooner you understand your current financial position, the easier it is to set up clear financial goals, making you – and your team – accountable for the business’ growth potential.
To boost your financial health, utilise accounting and invoicing software like MYOB Exo to track expenses. This will give you a clear outline as to what’s taking up the bulk of your cash flow and where there’s room for improvement. Without an easy way to gather and review financial data, you put your business at serious risk. Even if things are rolling smoothly, it’s a good idea to track and monitor all expenses. There will always be something that can be refined and if you’re not tracking everything, you miss out on the opportunity to expand and better your business.
IT Health Check
Health checks shouldn’t just stop at combating risks and tracking expenses though. With most of us using IT to do business, it pays to perform regular IT health check to keep on top of security breaches. Business owners rely on the benefits of the Internet and other essential tech-devices on a daily basis. As soon as issues arise, no matter how minor they may seem, they can be quick to snowball into serious problems, compromising security, employee productivity and communications. All of which end up costly and time-consuming!
To keep your hard work protected and business running efficiently, frequent IT inspections should be performed. These health checks will encourage simple measures to stay in place, like regular backups and password changes, and outline any issues which could pose a threat to your business. Because IT systems are constantly evolving (and viruses and security breaches are quick to keep up too), it’s imperative you take necessary measures to keep data secure and stay ahead of the competition.
Frequent health checks are the ultimate way to assess key business areas. From management and leadership, to business improvement, financial position, human resources, marketing and branding, training and IT, vital checks will safeguard your empire and keep your finger on the pulse when it comes to industry changes and rivalry.
This article is written by Jayde Ferguson, who recommends Horizon Business Systems – a leading software solution provider based in Perth, dealing exclusively with MYOB EXO Business and MYOB Advanced ERP systems. You can catch her on Google+.
Author: Jayde Ferguson
Founder of Toward Music, Jayde is a scripturient with a consuming passion to write. With 12 years experience as a freelance music journalist, she’s also a dedicated writer in the business industry with an undying love for typewriters & street press.