Business Money Milestones by FAIRWINDS

2. Assess your financial plan and team.

You can’t go it alone. Have a financial plan in place that is supported and implemented by a team you trust.

Review your actual-to-budget financial performance.

Continue to review and update your monthly expenses and payments and compare that to your monthly income.

For a healthy financial performance, we recommend a Debt Service Coverage Ratio of at least 1.25%.

Debt Service Coverage Ratio Calculator

Focus on products and services that drive revenue and profitability.

Pricing your products and services appropriately is a balancing act.

Assess your team, including management, key employees, and outside partners.

Just as important as reviewing your budget is evaluating your business’s support team, including employees and vendors.

Part of your annual assessment should include these questions:

  • Do I have a CPA, attorney, and insurance partner who can help me take my business to the next level?

  • In the event of a supply chain issue, do I have multiple vendors available to support my business needs?

  • Is my vendor providing me with the best pricing?

  • Are there other vendors that provide the same or greater services for a comparable price?

  • As my business grows, is my vendor able to grow with us?

  • Are they offering all of the services and tools needed to support my business?

  • Do my employees have the necessary skills and training as my business grows?

  • Do I need to outsource current internal jobs/services to another vendor?

Asking questions like these can help you stay on target to grow your business and your bottom line successfully.