This is not so hard, it just needs some healthy scepticism (did you see how cleverly I weaved 'healthy' in?) and a few quiet minutes of your time.

Any business:

1. Always needs a proper and effective legal structure (for tax, CGT, control, or protection purposes), so is it the best for short to mid-term needs?

2. Requires financial structure, which means at least a one-year strategic plan (targets and key tactics), monthly operating budgets (sales, profit and loss, cash flow, breakeven sales, scenarios for each possibility of best, worst and likely results).

3. Should compare actual results to forecasts regularly.  Are you achieving targets?  Why not?

Is your business going from strength to strength?

Growing businesses can sometimes fall victim to their own success.

4. Is cash flow capable of funding the growth?

5. Could cash be found by collecting debts faster, clearing surplus stock, stretching supplier payments, or some finance for working capital?

6. Do you know how to keep the momentum going?

Is the business faltering?

A business can seem successful, but sales trends and margin could be slowing or under pressure.

7. Look for warning signals - rising stock levels, rising costs and debts, cash collections slowing, staff turnover, and whether key revenue lines are no longer profitable.

Has the business failed?

Technically, a business is insolvent when it cannot pay debts as they fall due.  Directors can be personally liable for debts incurred after a company becomes insolvent, or to the ATO for unpaid employee tax deductions and superannuation.

8. Are there frequent letters of demand, do suppliers insist on COD, are BAS up to date?

Fairly simple, but be honest in your appraisal.  You'll instinctively know if you should be concerned about something.  The solutions are also fairly obvious but perhaps a phone call to us could help.  One tool we use is our process, which we call a Business Performance Review (trends, concerns, suggestions, cash v profits explanation, rough plan for one year), which usually hits the target.  And, sometimes, we might suggest a Profit Improvement Session - needs a few hours but the benefits to you are outstanding, and we'll even guarantee that it will be.  (And, you get a lot of my lame jokes too!)

Remember, your most important job is to be effective at accomplishing the goals of your business.  However, you are allowed to make the job easier with tools or by getting some assistance.