Page 9 - Upper Peninsula Business Today -- January 2020
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JANUARY 2020 UPPER PENINSULA BUSINESS TODAY PAGE 9
 How Healthy Is Your Small Business?
 Jeff Ketchum
This month’s areas of focus of UP Business Today includes health and wellness. Tradi- tionally, we may interpret health and wellness to be subjects more personal in nature, how- ever we can also look at health from a busi- ness perspective.
When assessing the health and wellness of a business, we suggest looking at five core areas: culture, leadership, finance, business operations and brand. For the purposes of this article, we have developed a scorecard to deter- mine the health of your business. For each of the twenty-five points below, score your busi- ness on a scale of 1-5, 5 being the highest score. Then add up your totals for each core area.
Culture:
• “Why” you are in business has been defined and shared with employees. (1 2 3 4 5)
• A company mission statement has been developed and is known. (1 2 3 4 5)
• Company values have been developed, are
communicated and lived daily. (1 2 3 4 5)
• There are clear and consistent lines of com-
munication with staff. (1 2 3 4 5)
• There is a clearly defined process for recruit-
ing and it reflects your culture. (1 2 3 4 5)
Total Culture Score __________
Leadership:
• You have a vision for your business and are consistently sharing with staff. (1 2 3 4 5)
• Clearly defined, measurable objectives have been developed for 1-3 years. (1 2 3 4 5)
• There is a succession plan to ensure continu- ityofbusiness.(12345)
• Staff is trained and regular development occurs.(12345)
• You take time regularly to learn and become a better leader. (1 2 3 4 5)
Total Leadership Score__________
Finance:
• Monthly financial statements are received by the 10th of the following month. (1 2 3 4 5)
• Monthly budgets are developed prior to the startofthemonth.(12345)
• There are three to six months of business sav- ings.(12345)
•Littletonodebt.(12345)
• Net profitability is healthy (10%+). (1 2 3 4 5)
Total Finance Score__________
Business Operations:
• Business processes or work instructions are documented. (1 2 3 4 5)
• Core business systems run smoothly. (1 2 3 45)
• Waste of time, money, motion, travel, rework and skill is limited. (1 2 3 4 5)
•Quality of products or services is a priority
and audits occur regularly (1 2 3 4 5)
• Operation teams meet at least quarterly to
continuously improve. (1 2 3 4 5)
Total Business Operations Score__________
Brand:
• Website and social media presence is clear andconcise.(12345)
• Building or vehicular signage is attractive and clear.(12345)
• Reputation in business is regularly measured through surveys. (1 2 3 4 5)
• A marketing calendar exists with planned promotions or other initiatives. (1 2 3 4 5)
• There are documented procedures for how leads are converted into sales (1 2 3 4 5)
Total Brand Score__________
Next, add the scores together for all five core areas and compare your score to the scale below.
My grand total score is _________
101-125 Great health
76-100 Good health
51-75 Average health
26-50 Poor health
0-25 You may want to rethink being in busi-
ness
Becoming aware of the general health of your business is the first step in improving upon your business in 2020. The second step is weekly or monthly setting aside time to work “on your business” in the area of most need. Take it slow but be consistent and by the end of this year you will have major progress in the areas you decide to improve. Slow and steady wins the race. Have a great 2020!
Jeff Ketchum is a 20-year resident of the Upper Peninsula and the Founder and President of several U.P. based small businesses. One of them, Lord- stone Business Advisors, Inc., helps guide small business owners ($1M - $50M) who are looking to grow their business through effective planning, hir- ing, leadership development and execution.
   900 1st Ave. South, Suite A P.O. Box 1064, Escanaba, MI 49829
906-786-3300 • www.ddgi-ddm.com
 









































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