How to Know If Your Business Is Healthy (A Simple Checklist)

You go to the doctor for a checkup once a year. You check your credit score periodically. But when was the last time you gave your business a real health check?

The 10-Question Business Health Check

1. Is your revenue growing at least 10% year over year? If flat or declining, something is capping your growth. Flat revenue in an inflationary economy means you're actually shrinking in real terms.

2. Is your net profit margin above 10%? Below 10% means you're one bad month from losing money. Below 5% means one bad week.

3. Do you have at least 2 months of expenses in cash reserves? If revenue stopped tomorrow, how long could you keep the lights on? Two months is the minimum.

4. Is your repeat customer rate above 25%? If fewer than 1 in 4 customers come back, you're spending too much on acquisition.

5. Do you know your customer acquisition cost? If not, you can't know whether your marketing is profitable or burning money.

6. Do you have more than one significant revenue channel? If 70%+ comes from a single source, you're fragile.

7. Could you take two weeks off without the business collapsing? If not, you don't have a business — you have a job you created for yourself.

8. Are you paying yourself a market-rate salary? A business that only works if the owner works for free isn't viable.

9. Do you know your top 3 business metrics without looking them up? Owners who know their numbers make better decisions.

10. Would you invest in this business if you weren't the owner? Look at the revenue, margins, growth trajectory. If the honest answer is no, what would need to change?

Scoring Yourself

8-10 yes: Genuinely healthy. Focus on growth and optimization.

5-7 yes: Surviving but vulnerable. One or two areas need attention.

Below 5 yes: Significant health issues needing immediate attention. Not a death sentence — it's a diagnosis.

Go Deeper Than a Checklist

A Revenue Health Score measures all five pillars — revenue, profitability, cash flow, retention, and acquisition — and tells you exactly which one is your weakest link. It's the difference between knowing something feels wrong and knowing exactly what's wrong.