How is Your Business Health? (#Cashflow) Tip 1

Day 1 of Ezypay’s 31 Day #Cashflow Challenge gives your business health a much needed prognosis.

business health

Tip 1: Know your current financial position

The profitability of a company is often described in terms of its net worth value or efficiency, but for most small-to-medium enterprises, good business health refers to the financial situation where there is a strong emphasis placed on the economy of its operations (i.e. the cashflow).

In short, knowing the financial position of your business (also known as operational review) is key to ensuring that your gym or fitness center will enjoy a positive financial year ahead, as well as relieve all business owners of a fair amount of stress. While the task of constantly updating, monitoring and reviewing your business health may seem daunting, be warned that purposely delaying your weekly reviews will only cause it to become a much harder, tedious and expensive process in the long run.

On the surface, reviewing your business health is measured by the amount of monies saved with that exercise, but there are also other intangible benefits to this regular practice – such as identifying and addressing previously overlooked concerns within the organisation or business operations, e.g. communication issues, conflicts in certain departments and hidden expenditures.

Why Weekly Business Health Checks are Important

We highly recommend that all businesses review their business health on a weekly basis – even if you’re a startup with a less than 6 months track record! This is because regardless of your business size or income, there are always new areas where you can truly cut back and save. Remember that small expenses (such as coffee runs and office stationery) can also add up to quite a substantial amount, after all. The site, Breaking Muscle also has a great blog feature by David Cross from Evo Fitness on why maintaining spreadsheets are important in the fitness business.

On the upside, this also allows your gym or fitness center to quickly spot and celebrate things that you’re doing right as well – e.g. over-achieving staff members, properly allocating resources and ensuring that all tasks are completed within the time frame. In the long run, a steady habit of faithfully reviewing your business costing 52 times a year will inevitably ensure that your company is constantly prepared to meet future challenges and expansion, besides also reducing cost and consequently improving your business cashflow.

To quote Aristotle, “the whole is greater than the sum of its parts” and a truly successful business not only has a good product or service, but should also have a healthy, sustainable operation.

Need more tips? Download the full PDF here.

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