Business health check: A 10-step guide to assessing the health of your business in 2026

• A business health check helps you assess your current position and plan for growth.
• Key areas to review include cash flow, operations, tax obligations, crisis planning, people, and technology.
• Regular check-ins support better decision-making and help you stay focused on your goals.

Running a business means constantly adapting – whether that’s responding to new opportunities, economic headwinds, or emerging technologies.

Conducting regular business health checks is critical to assess your current position, refocus your strategy and make more informed decisions about the future of your business. A comprehensive review should cover your financials, tax obligations, operations, people, supply chain and use of technology.

This 10-step guide is designed to help you assess what’s working and what’s not, so you can prepare for your next phase of growth.

A business health check should always start with the numbers. Before turning to operations, planning or growth, it’s essential to have an up-to-date, accurate view of your financial position.

Consider in your financial plan:

• How do our finances align with our overarching business objectives?
• Are our financial procedures, like bookkeeping, efficient and up-to-date?
• When was our last thorough assessment of the profit and loss statement?
• Should we re-evaluate our cost structures?
• What factors might impact sales in the near to mid-term?
• What is our current net cash flow position?

To support more informed decisions, it’s worth revisiting your financial forecast. A three-way forecast – covering your profit and loss, balance sheet and cash flow – offers a more complete view of where your business is heading. Reviewing this monthly helps you track performance, stay agile and identify emerging risks or opportunities early.

Read our guide to business forecasting ->

Your tax position has a direct impact on your working capital. Recent changes to ATO legislation mean the cost of deferring tax obligations is now significantly higher – and the criteria for payment plans have become stricter.

Under the new legislation:

• You can no longer claim a tax deduction for ATO interest charges – including the General Interest Charge (GIC) and Shortfall Interest Charge (SIC)
• Interest charges can now exceed 15% after tax
• The ATO is tightening access to payment plans, with closer scrutiny of eligibility
• Interest remission is still available in some cases, but the bar is higher

If your business has previously relied on ATO arrangements as a cash flow strategy, it might be time to reassess that approach. These changes could have a material impact – especially for businesses with seasonal revenue or tight margins. Stay across your obligations and consider alternative funding options where appropriate.

Read our guide to ATO tax debt repayments ->

Evaluate your current operational structure. As your business grows – and as legislation and regulations, technology, and customer expectations evolve – existing processes may need to adapt.

Key areas to review include:

• Performance measurement: Set actionable metrics to track milestones and team performance.
• Technology and equipment: Invest in tools that improve operational efficiency and reduce costs.
• Customer feedback: Create simple channels to gather feedback and identify improvements.
• Compliance: Stay up to date with changes to laws and industry regulations.
• Supply chain resilience: Strengthen your supply chain to manage disruptions and maintain reliability.

While day-to-day operations can take priority, stepping back to assess and improve how your business runs is critical for long-term performance.

People remain one of the biggest drivers of productivity. Assess your workplace culture and employee engagement. Employee satisfaction goes beyond pay – it includes intellectual challenge, opportunities for development, and wellbeing and work-life balance.

Key areas to consider include:

• Demographics and workforce planning: Consider how factors like an ageing workforce, skill shortages or generational shifts may affect staffing needs
• Diversity and inclusion: Build an inclusive culture that values different backgrounds, experiences and perspectives
• Continuous learning: Provide opportunities for staff to upskill or reskill as business needs evolve
• Technological awareness: Keep teams informed about how emerging technologies affect roles and workflows
• Hybrid work models: Treat remote and decentralised workforces as a permanent part of your business, not a temporary fix

In 2026, a strong culture is not just a “nice to have” - it’s a competitive advantage. A considered approach to people and culture ensures everyone is invested in your business’s success.

Strong relationships with suppliers and other external stakeholders are a key part of any business health check.

To strengthen these partnerships:

• Alignment with goals: Ensure supplier relationships support your current business objectives. If misaligned, consider renegotiating terms or exploring new partners.
• Communication: Maintain open lines of communication – including how suppliers manage disruptions and risks.
• Internal processes: Review and streamline your supply management procedures for clarity and efficiency.
• Performance monitoring: Regularly assess supplier performance and provide – and ask for! – constructive feedback.

Strong supplier relationships make it easier to negotiate, meet customer expectations and seize opportunities to grow together.

Read our guide to managing supplier relationships ->

Intellectual property (IP) is often one of your most valuable assets. It underpins your brand, your competitive edge, and the products or services you take to market. As part of your business health check, review your IP position to ensure it’s properly protected and up to date.

Key areas of your intellectual property to review:

Treating IP as a strategic asset – not just a legal requirement – can help protect your business today and support your future growth.

Cyber threats continue to impact small businesses, who are often prime targets due to limited resources and internal expertise. In the 2024–25 financial year alone, according to the Federal Government's Annual Cyber Threat Report, over 84,700 cybercrime incidents were reported in Australia – one every six minutes.

To bolster cybersecurity consider the following:

• Cyber risk awareness: Treat cyber incidents as a matter of “when,” not “if”.
• Incident response planning: Establish a clear plan to detect, contain and recover from attacks.
• Staff training: Educate employees on risks like phishing, password hygiene and remote work vulnerabilities.
• System protection: Keep security software, backups and authentication protocols up to date.

A proactive cybersecurity strategy not only helps reduce risk and minimise disruption if an attack should occur, it also builds trust with customers and partners who rely on the security of your systems.

Read our guide to protecting your business against cyber crime ->

Artificial intelligence (AI) is fast becoming standard business practice – improving efficiency, reducing costs and unlocking valuable insights. To make the most of AI, consider both how you integrate it and how you train your team to work with it.

Key AI applications include:

• Data Analytics & Optimisation: AI enhances inventory management, logistics, and fraud detection.
• Customer Insights & Marketing: AI analyses purchasing patterns for personalized recommendations and targeted campaigns.
• Recruitment & HR Efficiency: AI streamlines hiring by screening applications and identifying top candidates.
• Content Creation & Branding: Tools like ChatGPT assist in generating social media posts, blogs, and ad copy.
• Operational Improvements: Automation reduces inefficiencies, cutting costs and improving workflow.

Start with tools and processes that address immediate challenges, and build from there as your needs evolve.

Read our guide to AI for business ->

Your goals should evolve with your business. Sustainable growth requires both planning and regular review. The key is to choose a growth strategy that fits your current stage and challenges.

Key business growth strategies include:

• Market penetration: Increase your share in an existing market by reaching more of your current audience
• Market development: Introduce your existing product or service to a new market segment
• Product development: Expand your product line to better serve current customers and unlock cross-sell opportunities
• Diversification: Create new products for new markets to open additional revenue streams and spread risk

With the right strategy in place, you can scale at the right pace and set your business up for long-term success.

Read our guide to growing your business ->

A business health check shouldn’t be a one-off. Making time to regularly step back from day-to-day operations creates space to think more clearly and review how you’re tracking against your goals.

It’s an opportunity to assess your direction and make practical improvements that support long-term momentum. When you understand where you stand, you’re better equipped to make confident decisions about what comes next.