As much as we want our lives and the lives of our loved ones to be healthy, we also have to focus on our businesses. After all, the business we are currently employed by, or running, will be what provides us with the financial livelihood to offer healthcare and other well-being based amenities to our families. So, it is important that you realize the health of your business can be explained by 8 factors.
While you’re busy trying to ascertain your business’ financial acumen, True Health Diagnostics is there for you. They will be the ones who are able to offer you early diagnosis for those things that directly impact your physical health and well-being. With their outcome driven care and personalized service, tied to their usage of preventative medicine, you’ll be able to focus more on your company’s health.
The 8 Factors You Need to Evaluate Now
Keeping yourself in tiptop shape is one thing, but ensuring that your business is operating at optimum capacities and bringing in the most beneficial profits it can, is another. These are the 8 factors you need to evaluate now:
- The size of the inventory– Product focused businesses must have a close eye on their inventory. Stock counts need to be taken regularly. Having too much inventory can cause problems or be indicative of existing problems. Pay close attention to your inventory levels.
- Inventory reduction– When you own a business with less inventory you don’t have to pay so much for stocking and storing it. Just make sure you have enough on hand to keep your customers happy.
- Accounts receivable- Businesses can’t grow if they don’t collect on the debts they are owed. You’ll need to reevaluate your credit policies, turnover, and the scheduling of your cash collections to ensure they are functioning appropriately.
- Net income- This is a big deal when it comes to the sustainability and longevity of a business. There are several net income ratios that will help you get a better picture of just how well the business is or isn’t doing. You will probably need to study up on this concept and this is an excellent resource.
- Capital- Working capital will help you understand what you actually have to stay afloat. It’s the liabilities the company has, subtracted from its assets. A good ratio to remember is net sales to working capital.
- Sales- The activity you see in the sales department can be an indicator of how successful a business is. But, the figures they provide often appear better than they actually are. You’ll have to read between the lines to determine what the true growth rate is. It pays to examine the marketplace you’re in too.
- Measure fixed assets– While assets are generally deemed good, you should know why certain aspects of the business fall into this category. Check for unused equipment as that mean that the demand for products and services has declined.
- Corporate culture– This dictates the operating environment. You will need to know which clients will stay active even if the trends and retail desires of consumers change. Companies with diversified products and services will contribute to a culture that is successful in the business market.
There are other things to consider when reviewing your business’ financial well-being. You can read more about that by clicking this.