Diagnostic

It is important to do ongoing diagnostic analysis of your business to capture details of your current structure, management operations and plans, and to highlight priorities for your business to enhance viability and growth. Below is a template which can be used for diagnostic testing of your business.

PART 1 – The purpose of your business and product / service range

1. What is the primary purpose of your business?
2. What is the major market for your product / service?
3. What are the main activities of your business?
4. Next to these activities, list who your key customers are for each activity
5. Are your revenues in each of these activities / products / services declining, static or growing?
6. Are there any changes in sales revenues?
7. Is your market share for each of your products / servicse declining, static or growing?
8. Who are your major competitors for the products / services listed above?
9. How do your products / services differ from those of your main competitors?
10. Is advertising and promotion being undertaken effectively by targetting specific markets with clearly defined objectives and budgets?
11. Is there some form of monitoring in place to determine the source of  referrals and new customers?

PART 2 – The current status of the firm

1. Does you have quality assurance and accreditation?
2. Are staff, suppliers and customers aware of it?
3. What customer feedback do you receive regarding the quality of your product and/or service?
4. Do you have a current business plan?
5. Are your staff aware of it?
6. Does the business plan contain a marketing strategy? Is it based on market research?
7. Does the business plan have a budget for the next 12 months?
8. Are your financial records current?
9. Is there a system in place to accurately record GST and tax?
10. Is there a system in place to review profit / loss on a monthly basis?
11. What are the notable strengths of the management team?
12. What are the notable weaknesses of the management team?
13. What training or other measures have been put in place to address these weaknesses?
14. What is your rate of staff turnover in the past 12 months?
15. What percentage of your turnover is spent on product / service development?
16. What significant technology have you introduced in the last 2 years?

PART 3 – Financial position and strategy?

1. What is your turnover for the past two years?
2. Do you have many debtors? How do you manage them?
3. Do you have many creditors? How do you manage them?
4. What extra resources will be needed to enable you to reach your short, medium and long term goals?
5. How do you secure capital for expansion?
6. When will you need to replace existing equipment if you are to meet your planned goals?

 

PART 4 – Thinking Ahead

1. What is your vision statement or mission statement?
2. What are your stated objectives?
3. What are your goals over the next 2 years in turnover, profitability, sales, market share, employment, facilities, visibility?
4. What changes do you need to put in place to achieve these goals?
5. What are your medium term goals in the above categories?
6. What changes do you need to put in place to achieve these goals?
7. What are your current strengths as a business?
8. How can you enhance / build upon these strengths?
9. What are your current weaknesses as a business?
10. How can you reduce / eliminate these weaknesses?
11. What are the current major opportunities you have?
12. How can you maximise the benefit of these opportunities?
13. What are your current threats?
14. How can you minimise the impact of these threats on the business’s future?
15. How can you sustain growth of existing products / services to existing / new customers?
16. How can you sustsain the growth of new products / services to existing / new customers?

 

PART 5 – Action Plan

What are the next steps to achieve your short, medium and long term goals? When will you complete these steps by?

 

 Resources for Diagnostics:

Business Performance Diagnostic – Financial

Balance Sheet Ratios

Efficiency Ratios

Diagnosing Ratios