Focusing on urgent customer, employee, or supplier demands often prevents business owners from planning for the future. You may want to enlist the help of an outside business coach or business advisor if you’re simply thinking about what you’re doing “in” your company and not what you’re doing “on.” What you’ll want to do is enroll in what’s known as an Annual Business Health Checkup.
To put it another way, an annual checkup is a current, complete assessment of the most important aspects of your business which determines it’s current market value. When you use this tool, you’ll be asked a series of questions that will help you see the business from the perspective of an outsider. This starts with a thorough examination of the business. The results of this assessment will reveal the company’s strengths as well as areas for improvement.
What Are the Benefits of Performing a Business Health Check?
There are two phases to the Business Health Check procedure. First, a series of questions will be answered and three years of financial statements provided. This is the diagnostics portion. The responses will be reviewed by a seasoned professional. This professional evaluation will be put together in a report and the business owner is, at this point, set up for a follow-up meeting.
With the help of the M&A Advisor, the business owner will decide on the best course of action to take to improve the company’s performance and market value. This brings further clarity and purpose to the business, and inspires action and positive, forward thinking changes. Knowledge enables professionals and the system to steer the company to a successful route from the start to the finish of the Business Health Check which includes an Opinion of Value Report.
What Are The Stages To Performing A Business Health Check?
It’s a simple process. Working with an experienced M&A Advisor, the owner/manager is guided through every aspect of the business. You are assisted in assessing the conclusions of the Opinion of Value report and developing a strategy to implement the needed changes. Areas of possible focus include:
- External Elements: How is the company coping with elements over which it has no control? The industry, business climate, technology, competitors, and consumers, including owners/shareholders, are all considered.
- Goals, Strategies, and Plans: What Is Your Business’s Future Vision? What do you envision for your business’s future? What steps must you take to make this idea a reality?
- The Strategies Will Be Supported by Structure and Culture: How will you arrange people, cash, resources, and everything else? What are the company’s key principles?
- Marketing, Sales, and Business Development: How will you serve potential clients about your company? How will you maintain and grow the best consumers, goods, and services?
- Production, Operations, and Logistics: How do you plan to source, create, and manage goods and services to meet your customers’ needs while preserving quality and consistency?
- Accounting, Finance, and Cash Flow: How will you handle the bookkeeping, accounting, and financial information while ensuring that the business needs are met and the owner has a positive cash flow?
- Individuals & HR: How do you find and manage the best people for the job?
- The Procedures, Systems, and Data necessary to keep everything in order: Is there a certain system or method that you need to support every aspect of your business? How will you know when business is humming along at its best?
Choosing Edison Avenue will give you a healthy and realistic view of your business and how attractive it is from a buyer/investors perspective. Just like checking your blood pressure knowing what your company is worth today and what you can do to improve the value tomorrow is critical to successfully exiting the business when the time is right. Are you ready for an Opinion of Value Report?
Edward Valaitis Managing Director of Edison Avenue has earned his Certified Business Intermediary (CBI), Certified Merger & Acquisition Professional (CMAP), Certified Value Builder (CVB). He has more than 25 years of experience building, managing, and selling companies with expertise in business transactions, business valuations and growing businesses. Business Broker serving the United States based in Tampa and Destin, Florida.