Small Business Diagnostic

2010

[SMALL BUSINESS DIAGNOSTIC] Pre meeting Client worksheet Small Business Diagnostic In order to get the most from mentoring, SBMS have written a brief diagnostic. Please fill out as much as you can. If there are areas that you are unable to answer, don’t worry, the Mentor will be able to explain or work through these questions when you meet.

On completion of the diagnostic, return it to the Mentor via email, fax or mail. This will allow the Mentor to have an understanding of your business and needs. The information provided in this document is held as private and will be used solely by SBMS to help you with your business.

Date Business name: (or trading as ….) Referral Number & Contact Number Assessed by: Mentor (Person filling out diagnostic)

Criteria Score range Comments Poor score Average score Good score Circle or colour the correct answer 1 Management capability 1.1 Management experience overall 0 1 2 3 4 5 General business experience Inexperienced Very experienced 1.2 Expertise/skills of proprietors 0 1 2 3 4 5 Level of specific expertise & skills in New to field Well established the business field in field 1.3 Employee/team strengths 0 1 2 3 4 5 Complementary skill sets Significant gaps in team Excellent skill coverage 1.4 Vision and drive 0 1 2 3 4 5 Owner’s commitment to their low energy/interest Strong drive, focus objectives

2 Commercial performance Comments 2.1 Track record 0 1 2 3 4 5 How established is the business? Not yet Relativel In operation Highly operatin y new several successful, g years longstandin g 2.2 Business viability 0 1 2 3 4 5 What is the prospect of survival? Unlikely Moderate Assured 2.3 Business planning 0 1 2 3 4 5 Is there a current business plan, or No plan Some attempt Strong plan & evidence of some planning? at planning commitment 2.4 Financial position 0 1 2 3 4 5 Are you making taxable profits? Start-up Losses breakeven 15%NPBT 2.5 Financial planning 0 1 2 3 4 5

2.6 Cash management 0 1 2 3 4 5 Does the business have adequate cash Always short Heavily Ample cash sound resources, and how is the cash of cash borrowed management managed? 2.7 Growth aspirations 0 1 2 3 4 5 Has the business some growth No Some Industry Substantial potential? Is the industry in which it growth possibilitie expanding opportunities operates in a growth phase, or is the s industry stagnant or decline?

Criteria Score range Comments Poor score Average score Good score

3 Business product/service 3.1 Stage of development 0 1 2 3 4 5 How advanced are the key R&D Early Commercial Highly product/services; not yet released, phase prototype products successful currently marketable or already commercially viable. 3.2 Product range 0 1 2 3 4 5 Does the business survive on just one Lone product Narrow range Integrated or two products? range 3.3 Competitiveness 0 1 2 3 4 5 Do the key products/services benefit Much Moderat Holding Strong from filling niches in the market, or is competition e threat firm market there sustainable competition? position 3.4 Market need 0 1 2 3 4 5 Is there clear evidence of need in the Must be tested Needs Clear need market place for the key promotion exists products/services? 3.5 Functionality 0 1 2 3 4 5 How well is the market’s need for the Not at all Needs refinement Very well key products/services addressed? 3.6 Innovativeness 0 1 2 3 4 5 How innovative is the business? Is None apparent Some ‘new’ Very there evidence of creativity, or of ideas/features innovative regularly launching new products/services or enhancing existing products? 3.7 Product profitability 0 1 2 3 4 5 What evidence is there to indicate that None Some Breakeven Clear each key product/service is profitable attempt is indication of for the business? unknown profitability

4 The market Comments 4.1 Market size 0 1 2 3 4 5

3 SBMS Experienced Business Mentors (c) 2010 Is the size of the market for the Very limited moderate Substantial products/services very limited or substantial? 4.2 Market access channels 0 1 2 3 4 5 Is there a clear understanding of how None Very limited Significant to approach the market? evidence expertise in marketing

4.3 Target market 0 1 2 3 4 5 Can the owners clearly identify the No Trying Yes Very target markets for their focused products/services? 4.4 Marketing plan 0 1 2 3 4 5 What is the extent of formal planning? None Some attempt Detailed plan 4.5 Competitive advantage/s 0 1 2 3 4 5 Has a creditable analysis been done of None Some attempt Comprehensiv comparing their products with others? e

Criteria Score range Poor score Average score Good score

5 Overview Comments 5.1 Barriers to entry 0 1 2 3 4 5 Is the business relatively ‘safe’ from No costly Relatively Small Substantial more competition in the next year or barriers inexpensiv market, barriers two? Is there considerable investment to entry e for others little required in plant and equipment, or in to compete opportunit y technology, for competitors to issue a real challenge? 5.2 Government involvement 0 1 2 3 4 5 What is the impact of government Little govt. Some govt. Substantial regulations, fees or specific licensing intervention intervention involvrment requirements on the business? Any controls on resources? 5.3 Export potential 0 1 2 3 4 5 Does the business have None Limited Already Huge products/services that could be potential exporting export exported? This could suggest potential substantial new markets and may open the door for government assistance/grants. 5.4 Funding need 0 1 2 3 4 5 Could the business maintain its place Little difference Some growth Would be in the market, or expand satisfactorily with extra possible significantly without additional funding? funding enhanced 5.5 Intellectual property 0 1 2 3 4 5 Is there need for IP registered None Comprehensiv protection? e 5.6 Community benefit 0 1 2 3 4 5

4 SBMS Experienced Business Mentors (c) 2010 To what extent does the business None Employm Employ- Growing Large assist the local community or state by ent ment workfor employe numbers numbers ce r providing employment opportunities, contractin stable or contribute to ‘downstream’ g employment? Is growth in employment numbers planned? 5.7 Development 0 1 2 3 4 5 Based on an overall impression, how Unlikely to Moderate Likely to develop likely is it that the business will be prosper only chance into a substantial able to grow and prosper? business 6 Total

Background of the Owner(S) and Brief History of the Business

……………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………

What does the Business do? What are your Major Products and Services?

From which Industries / Markets / Groups do you draw your Customers?

……. ……………………………………………………………………………………………………………………… …………. ……………………………………………………………………………………………………………………… …………. ……………………………………………………………………………………………………………………… …………. ……………………………………………………………………………………………………………………… ………………………………………………………………………

What are the Unique Features of your Business / Product / Service?

Who are your Competitors?

……………………………………………………………………………………………………………………… …………. ……………………………………………………………………………………………………………………… …………. ……………………………………………………………………………………………………………………… ………….………………………………………………..………………………………

Do you have a Sales / Expense Budget? …………………………………………………………………………... (If yes, could a copy please be available at our Meeting)

How many staff does the Business employ? ……………………………………………………………………..….

Do you have a Website? If yes, please show address here …………………………………………. ……………………

What are your Key Business Objectives?

What are the three or four Major Challenges / Problems confronting the Business?

AREAS IDENTIFIED AS REQUIRING ATTENTION TO BE FILLED OUT TOGETHER WITH MENTOR AT FIRST SESSION

List categories requiring attention Prioritise categories (in order of urgency)

SUGGESTED TASKS & STRATEGY SCHEDULE

List in order of priority the top six categories (or areas of weakness) identified on the previous page as requiring most attention. The mentor should then record below some suggested tasks/strategies that would assist the small business proprietor. examples: ‘business planning’ - using a standard template, develop a plan to take account of current and future needs over the next 2 years ‘advertising & promotion – develop a plan (incl. design of new leaflets) to increase awareness of your new product range.

CLIENT’S OWN STRATEGY SCHEDULE

Based on the above suggested tasks & strategies the client(s) should now develop their own plans and objectives. The requirement here is to genuinely commit to a series of improvement programs by identifying the tasks needing attention, agreeing to a starting date, and committing to complete the task(s) by a nominated date. Over the ensuing months the mentor(s) will then regularly review progress with the proprietors, encourage them, and make suggestions as necessary to enhance the improvement programs.

D a t e T a s k t o t a c k l e C o u n s e l l o r C o m p l e t i o n ( m o n t h / t o a s s i s t d a t e y e a r )