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Will your business survive?
May 2, 2019  |  Kenelm Tonkin

 

There are no guarantees of business success.

However, you can look for telltale signs of survival and success.

 

 

 

 

 

 

 

 

Answer these questions and count how many times you replied ‘yes’.

Then calculate your Business Survival Score at the end.

 

  1. Does your business have few competitors?
     
  2. Is it hard for new competitors to enter your market?
     
  3. Do you have 3 months or more of cash in the bank?
     
  4. Is your business cash flow positive?
     
  5. Does it have customers who have paid this month?
     
  6. Will those customers buy again?
     
  7. Will your customers stay with you if you increase your prices?
     
  8. Is it hard for your customers to replace your product with a substitute?
     
  9. Will sales continue for a year regardless of your marketing spend?
     
  10. Are your suppliers negotiable on price?
     
  11. Are you a frugal owner?
     
  12. Are your books accurate and up-to-date so you can track progress?

 

Your Business Survival Score is calculated as the number of times you answered ‘yes’.

Here is what your score means:

0–6 Business status: vulnerable. Urgent action required
7–9 Business status: promising. More work needed.
10–12 Business status: strong. Keep it that way.

 

What is your Business Survival Score? Are you happy with your current business status? Do you need practical advice on how to improve your company's ability to survive?

Let me know your thoughts in the comments section below.