Your ability to grow a successful and profitable “enterprise” – one that gives you the freedom to enjoy your success – depends on how well positioned you are on the following metrics. On each of the four main metrics, rate each sub point and tabulate your average score, and then write your total score at the bottom. After that, answer the other questions and identify your priorities.

Rate Your Business Health
1 = Not in place at all.
2 = Needs improvement.
3 = Mostly in place, but not implementing consistently.
4 = Doing consistently well.

    Healthy, Growing Niche
    • You are positioned within the right geography, product and market niches for continued growth.
    • Company has a good % of customer wallet and market share, but still has room to grow.
    • Age of company/brand is 1 to 4+ decades old
    • Community loyalty is high: Company is well known amongst community.
    • Employees are attracted to come work at the company.
    • Marketing engine (on & off line) brings in new clients and builds company brand.
    • Referrals make a strong (but not total) percent of sales.
    • Sales are making a steady upward rise.
    Not Owner Centric
    • Sales, Production and Admin: Leaders, systems and written processes are in place; not dependent on owner, except in a mentoring role.
    • Employee Culture - employees are loyal to the business, not the owners.
    • Customer Culture – clients’ working relationships are with employees.
    • Owner can take 3 weeks vacation in a row – with no large problems or slow down. (0=no weeks, 1=one week, 2=two weeks, 3=three weeks)
    Stable, Experienced Management
    • Management team is in place (3+ years) and performing at a high independent level.
    • Managers and employees know what a “Win” is each day, week, month, and year.
    • Key management is tied to the future.
    • Non-solicitation and/or non-disclosure are in place.
    Aligned and Growable
    • Company is following a strategic plan.
    • Mission, vision and values are in place, with buy-in from employees.
    • People-Systems are in place for hiring and cultivating personnel.
    • Owner is growing his/her capacity to lead a prosperous enterprise.
    • A scalable business model is in place to handle and drive growth.
    Positive Financial Trends
    • Profits are high, above industry average(!!!) and growing each year.
    • Divisional profit center trends are clear, positive and above industry average (!!!)
    • Owner able to take money out of business to diversify and invest elsewhere.
    • Minimized working capital requirements: a) AR equals AP and doesn’t exceed it, b) Contracts are written so that company is never “upside-down” on revenues vs. expenses.
    • Balance sheet in good shape: Strong Equity (net worth.)
    • Three to five years of clean and clear financials, with positive trends.
    • Losing your top 2-3 customers would not hurt company financially.
    High Barriers to Entry
    • Supplier/vendor relationships are strong and act as a barrier to new entrants.
    • Company has a “competitive advantage” that is being nurtured: unique skill set, technology, approach to market, brand, etc.
    • Location gives you an advantage, if applicable.
    Common Risks are Reduced
    • Safety culture and systems exist, low worker’s comp mod factor, low accident experience and lost days.
    • A safety or government audit would not be a set back.
    • Proper documentation and insurance in place.
    • Contingency plans and disaster recovery plans in place and tested.
    • Not dependent on a single superstar in sales or operations.
    • Bench strength is being groomed.
    • Facility lease is not month-to-month
    Strong, Diverse Customer Base
    • Customer retention is high; Customer satisfaction is high and constantly measured.
    • Maintenance clients are tied in by contracts (one year is good, three year is better.)
    • Relationships with key clients are strong, and tied to company.
    Recurring Revenue
    • High % of your business is repeat or add-on sales (50% or more.)
    • High percent of your new business is referrals. (50% or more, if applicable.)