Have you analysed your product mix according to your gross profit margin?
	Are your wages, salaries and overheads adequately contained?
	Do you analyse your debtors on a regular basis?
	Can you negotiate better terms for supplies and credit?
	Do you have good stock records?
	Have you properly analysed your capital structure?
	Have you made adequate allowance for tax liabilities, in particular GST?

 

The Evaluation Process

Your appraisal should follow the following broad steps:

	Compare your business with similar businesses - where do you stand?
	Determine any key business units within your business.
	Examine overhead costs and apportion them to the business units.
	Assess how much each business unit contributes to profit.
	Count all of the costs.
	Bite the bullet - avoid sentimental decisions.