Small business scorecard.

Posted: February 19, 2013 in Family Businesses, Protecting your equity, Up-and-running Business
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How does your business score in the following key metrics?

  1. Has been profitable for the past 5 years?  ( 1 point for each year).
  2. Your business has a budget and has been on budget for the past 3 years? ( 5 points for each year)
  3. If your business is incorporated, does the business have “key man” insurance? (5 points for yes)
  4. If you employ staff, do you appraise their work annually? (5 points for yes and 0 for no)
  5. Do you have an exit strategy from your business or a contingency plan in the event of your death or debilitating injury? ( 5 points for yes and 0 for no).
  6. For corporate small business owners, do you know what your business is worth? ( 5 points for yes and 0 for no).
  7. If you have a will give yourself 5 points. If it has been updated in the past 5 years give yourself an additional 5 points.

The perfect score is 50 points. All shareholders of small businesses should carefully consider their scores in each of the 7 categories.

What is your course of action to correct the scores in any of the questions where your business falls short?

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