Financial Health Check: Free Assessment Template for Small Business

A financial health check is the perfect door-opener for advisory engagements. Offer it free, deliver genuine value, and a significant percentage of recipients will want ongoing help. Here's the framework.

The 10-Point Financial Health Check

Score each area 1-10. Total score out of 100.

1. Cash Position (Score: __/10)

• Months of cash runway: <2 (1-3pts), 2-4 (4-6pts), 5+ (7-10pts)
• Cash trend: declining, stable, or growing?

2. Profitability (Score: __/10)

• Net profit margin vs. industry average
• Gross margin trend over 12 months

3. Revenue Growth (Score: __/10)

• YoY revenue growth rate
• Revenue diversification (concentration risk)

4. Cash Flow Management (Score: __/10)

• DSO (days sales outstanding)
• Cash conversion cycle
• Operating cash flow positive?

5. Expense Control (Score: __/10)

• Operating expenses as % of revenue vs. benchmark
• Expense growth rate vs. revenue growth rate

6. Debt Management (Score: __/10)

• Debt-to-equity ratio
• Debt service coverage ratio
• Interest rates competitive?

7. Financial Reporting (Score: __/10)

• Monthly financials available within 15 days?
• KPI tracking in place?
• Forecast/budget exists and is used?

8. Tax Efficiency (Score: __/10)

• Tax planning strategy in place?
• Taking advantage of deductions and credits?
• Estimated taxes paid quarterly?

9. Risk Management (Score: __/10)

• Insurance adequate?
• Key person dependency?
• Customer concentration risk?

10. Growth Readiness (Score: __/10)

• Financial model exists?
• Access to capital if needed?
• Systems scalable?

Using the Financial Health Check as a Lead Magnet