How Financially Healthy Is Your Small Business?

Self-Assessment Checklist:

Use the checklist below to get a quick sense of your business’s financial health. There are no right or wrong answers—only indicators that help you identify strengths and gaps.

Answer each question with Yes / No / Sometimes.

 

1. Financial Standing (FS)

• Does your business generate enough revenue to cover all regular expenses?
• Is this year’s revenue equal to or higher than last year’s?
• Do you usually have enough cash to run the business without stress?
• Is your business not overly dependent on loans or credit to survive?
• Are inventory or stock levels reasonable (not too much, not too little)?
• Do you pay rent, utilities, suppliers, and taxes on time?

 

2. Access to Finance (AF)

• Have you repaid previous loans or credit on time?
• Could you raise emergency funds within 30 days if required?
• Do you believe a bank or financial institution would consider lending to you?
• Do you have access to funding for business expansion or investment?

 

3. Financial Management (FM)

• Do you regularly track sales or revenue?
• Do you record business expenses consistently?
• Are your business and personal finances kept separate?
• Do you avoid using personal income to cover routine business expenses?
• Are supplier and loan payments made on time?
• Do you feel in control of your business finances?

 

4. Stability and Survival (SS)

• Do you believe your business is stable today?
• Do you have more than one major customer or income source?
• Could your business survive losing one key customer?
• Do you have some cash reserves or savings?
• Could you make a small investment without borrowing?
• Is your business insured against major risks?
• Do customers generally pay you on time?
• Are unpaid customer dues kept under control?

 

5. Revenue Potential (RP)

• Do you see good revenue growth potential over the next 2–3 years?
• Are you actively looking for new customers or markets?
• Do you feel competitive pressure is manageable in your market?

 

How to Interpret Your Answers

• Mostly “Yes” → Your business shows signs of good financial health
• Many “Sometimes” → Your business is functional but vulnerable
• Many “No” → Financial weaknesses need urgent attention

This checklist is a diagnostic starting point, not a judgement. The purpose is awareness—because what gets measured gets managed.

 

Final Thought

Financial health is not just about profits. It is about resilience, control, and readiness for opportunity. Even small improvements—better record-keeping, timely payments, or cash planning—can significantly improve your business’s long-term survival.