When carrying out a financial health check on your business, you should think about reviewing the results. There are many reasons why reviewing results can help your business, from looking at the success of past developments to planning your company’s future growth.
We’ve already shown you how to carry out a financial health check on your business. Now we look at reviewing your results – why and how you should, what to consider, and when would be a good time to carry out a review.
Once you’ve conducted a financial health check on your business, your work shouldn’t stop there. By taking the time to carefully review your findings, you can learn a lot more about your business, what works, and what doesn’t work. You can also create a good picture of where your company is heading, so you can be prepared if things take a turn for the worst.
For instance, this could happen if:
Another significant benefit of reviewing your results is that it can temporarily take away the emotional connection you might have with your business – its services, offerings and people. This allows you to see your company in figures and numbers. While this might sound like you’re only interested in the bottom line, it can help keep you focused and look at your company objectively, rather than subjectively. This is important when making big decisions, such as having to put your company through a restructure. Or, if you wanted to determine whether it was worth investing in a new product or service.
Conducting a financial health check on your business also shouldn’t be a one-time thing. It’s something you could consider doing each year, or when you make big changes in your company. Reviewing the results can, in turn, allow you to make comparisons across your company year on year. Over time, you could also use a review to help you see how and where your company’s financial situation has improved. It can also help you benchmark your business to compare its financial performance with that of others in your industry. This can help you better understand if your company is standing up against the competition.
When reviewing your results, there are different approaches you could take, depending on the reasons for your financial health check. For instance:
You can also review your results by making direct comparisons across your business. These can range from different parts of your business, products and services, to different members of staff, areas of your budget, and specific expenses.
A breakdown of areas you could look at include:
You shouldn’t just think about reviewing your results right after conducting a financial health check. There are other key times to revisit your findings, which can help shape and develop your business. These include, at the end of your financial year, or before or after a significant change in your business, such as a new product launch or a new service team.
You could also review your results a year later to see how things might have progressed. Or you could look at them after a couple of months, depending on what you want to analyse. For instance, you might want to see how the new product or service you’re providing has performed, so you can look closely at possible issues and make further improvements.
Regularly reviewing your company finances to stay financially healthy is important in business. So it’s wise to have continuous support, advice and guidance in this area where you can to help your business grow and develop.
At FSB, we offer a series of packages with a wide range of membership services, which will provide you with the right financial help, advice and support to suit your business. These services include:
The packages we offer are suited to new companies, those already established, or those looking to connect with other fellow business owners. To find out more about our business packages and the benefits they could bring you, please visit our package comparison page or get in touch to speak to our dedicated team.