Attribute Survival Mode In Business Good Business Sustainable asset Score
Customer portfolio One to two customer represent more than 50% of total revenues Loss of any customer creates significant business risk We recognize customers have natural lifecycles and we plan for it No customer represents more than 10-15% of total revenues
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Client acquisition system New client acquisition is random New clients are like buses. When you need one it’s not there then three come at once We get new clients but they are not always the most profitable We have a predictable way to get the clients we want
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Money making machine We are very busy but sometimes we lose money We make money but don’t know how to further grow profits We understand how to manage both above and below the line improvements Islands of profit are understood and we actively divest low profit business
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Cash management We have less than 15 days cash on hand We sometimes need to delay AP or use personal funds to make payroll Working capital is well managed and we have a good cash reserve The business reliably generates significant cashflow and growth is cash positive
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Capital structure We have high debt and investment options are limited Debt is at a comfortable level but not systematically being reduced The owners have had good distributions and retained earnings are positive The business is steadily growing owner/shareholder equity
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Management bench The owners make all decisions and are sometimes overwhelmed We can leave simpler decisions to junior but often have to step in to correct or oversee Owners are able to give more time to strategic decisions as day to day is delegated We have an empowered management team with clear accountabilities
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Management operating system We run the business by instinct and feel. We judge success at year end We use metrics in some areas but they don’t link well to the financial performance We have a strategic dashboard with daily and weekly review We don’t get surprises We shape our future based on good data and sound financial acumen
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Standard procedures We are in constant fire fighting mode lacking documented procedures We are good at fixing problems and reward heroic efforts We identify root causes so the same mistakes don’t reoccur. We avoid problems Work processes are documented and can be executed without errors
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Winning formula We compete purely on price Our clients buy because we have a good "relationship" We have a distinctive offer. Not everyone can can clearly express it We magnetically attract highly profitable clients who pay on time
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