What is Business Diagnostics?
BUSINESS DIAGNOSTICS is a process where you can receive a "FINANCIAL HEALTH CHECK" on your business using a number of key indicators. This can involve:
- RATIO ANALYSIS
- COMPARATIVE ANALYSIS (BENCHMARKING AGAINST OTHER BUSINESS)
- OTHER FINANCIAL INDICATORS OF BUSINESS PERFORMANCE
Specific issues looked at include
- Gross Profit and Net Profit margins
- Asset Management issues from Balance sheet items
- Production ratios
- Various expense ratios
Please have a look at our ebook titled Where does your new business require attention?
You may have issues with GROSS PROFIT MARGIN (Gross Profit/Sales) that is holding your business back. Maybe you could:
- Increase the size of each sales transaction
- Target higher quality and features as a means of increasing price
- Check the mix of your sales (blend low margin items with higher)
- Encourage repeat business from customers
- Minimise the chances of shop lifting
- Allow for seasonal demand fluctuations in your purchasing
Personnel Productivity can be monitored as:
- Sales per person (OR) Sales per unit of plant (OR) Sales per $ of wages
- Gross Profit per person
Fluctuating from year to year or variations from benchmarks of greater than 5% to 10% could mean an investigation is required.
Where possible, you can have your assets benchmarked against similar business types, but it may not be possible to cover every ratio for every business.
However, the results provided should as a minimum provide an indication of trends in your business.
By filling in the form and submitting it, we encourage you to forward your financial results to us for A TOTALLY FREE ANALYSIS
