15 August 2022

6 non-financial indicators business owners use to improve value

Do you frequently get into the data and the detail to assess and prioritise what area needs the most action and when?

Financial analysis is not the only way to determine value or even performance of your business. Typically when we assess business performance it may include business profitability, cashflow, debt levels, efficiency and understanding the good and the bad of financial management.

It is important to know the key financial drivers and performance indicators at any stage of your business so that you can step in and focus on improvements if necessary. This is vital when you are considering exiting or selling your business.

What about the non-financial indicators?

A non-financial evaluation of your business will typically include an overview of your operations and to better understand:

1. Do you have your intellectual property registered and up to date?

2. Do you have monthly or quarterly management accounts?

3. Do you have monthly management meetings and minutes?

4. Are all employee agreements up to date?

5. Are your company registrations up to date?

6. Has your IT system including security process been updated lately?

Insights and analysis may include:

– The impact of key person dependencies

–  Review of board structure including diverse skills and experience

– Reviewing management team efficiency and effectiveness

– Training needs and resources

– Policy and procedures as a risk alleviation tool

– Shareholder agreements to reduce dependencies

– Unique insurance needs for your business

Many of the above are in your control and some can be improved on relatively easily. If you managing all of the above, as an example, hit pause and consider protecting your business and wealth that has been generated. 

If you think now is a good time to talk about business succession and exit planning, or growing your business please click on Let’s Chat below for a conversation with our expert Business Coaches.