Is your business health reporting at risk?
You have a client in your office. He’s stressed. His business looks stressed, too. He wants to refinance a loan to ‘see him through’ this difficult time.
“Is it a good idea?” he asks.
You know that’s not an easy answer. You can find some of the data you need to make a careful, considered decision in their MYOB solution, but there’s a more holistic business approach required.
Providing business health advice is part and parcel of the connected practice’s advisory suite of services.
Problems can arise, though, when generating a business health report that outputs a result that’s too high-level. A ‘single score’, for example, fails to take into consideration the various factors that can influence a business’s unique situation. These need to be isolated for an accurate picture and for possible solutions to be identified.
Sheree Cross of Strategic Solutions suggests the following five key areas need to be broken out when considering a business’s health and risk assessment:
- Market position, market performance and direction
- Products and Services – Customer fit
- Internal operational efficiency
- Financial performance and working capital
- Culture and organizational structure/performance