How do you know if your business is healthy?

Great, you’ve got your business health score, but how do you know if your business is healthy?, what does it mean and what can you do to improve it? This post will make you an expert in minutes

Business Health Score

Jazoodle Health Score

The business health score is the first place to start in assessing how your business is doing! Your score will change over time, and it is important to assess this regularly and to ensure that underlying performance trends are as you expect. The score can give you early warning of changes to the underlying success of your business. It is affected by a number of things, such as your revenues, your profit margins, your financial liabilities, amount of cash at your disposal, and the size and effectiveness of your asset base. So, how do you know if your business is healthy?

What does it mean?

Your health score is a great advance indicator of how your business is doing, and if you see changes over time, it may be time to act. Changes to the measure could mean underlying problems building with your business.

If your score is trending down, and goes below the 300 mark, it is highly advisable to consult your trusted accountant or business advisor Doing so early could mean the difference between a good and a poor overall outcome of the sustainability of your business.

We recommend keeping an eye on your health score regularly, and check for any changes to the score over time. The score could be a great early indicator for you of any potential issues creeping into your business.

Business Health Scale

Jaz Score Scale

Under 208 – Poor – Please seek immediate professional Advice

209-308 – Fair – Early warning – please speak with your accountant or advisor

309-408 – Good – Assess for changes

409-508 – Very Good – You’re in good shape, but check for downward pressures over time

509 – 600 – Wow, congratulations, you’ve no immediate problems on the horizon

How Can I Improve My Business Health?

So, it’s all very well knowing your score, but what can you do to influence it..? Here’s a simple cheat sheet giving you some areas to assess if your score is not as you want it, or is heading in the wrong direction. As ever, please consult with your accountant or business advisor though and work through an individual improvement project with your business. Download a PDF of the checklist here

Business Health Improvement Video Tips

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