A business diagnostic is a structured, fixed-scope review of the whole business that ends with a clear answer to one question: what should we fix first, and what is it worth? It looks at four areas together (finance, operations, organisation and market) because in a small or mid-sized business the causes rarely sit where the symptoms appear. It is the usual first step in a BusinessConsultingService.ca engagement.
What the diagnostic covers
The diagnostic examines four areas and links what it finds across them. Each finding is given a dollar value or a time value wherever the data allows.
- Finance. Revenue and margin trends over three years, contribution margin by service line or product, cash conversion (how long money sits in receivables, inventory and work in progress), and debt service.
- Operations. How a typical order or job moves from request to invoice, where it waits, where it gets redone, and what capacity really looks like.
- Organisation. Who decides what, where decisions queue, how roles overlap, and how much of the week the owner spends on work someone else could do.
- Market. Customer concentration, pricing against the value delivered, win rates on quotes, and which customer groups are most and least profitable.
Who it is for
The diagnostic suits established businesses, usually with somewhere between a handful and about a hundred employees, where the owner senses that something is off but the cause is not obvious. Typical triggers include:
- Revenue rose last year but the bank balance did not.
- The team works hard, yet jobs still ship late or come back.
- One or two customers account for a worrying share of sales.
- The owner wants to step back, sell in a few years, or bring in a partner, and needs an honest baseline first.
It is less useful for a start-up without trading history. A feasibility study or business plan is a better fit there.
What you receive
You receive three documents and a working session to walk through them.
- Findings report. Plain-language findings, each with the evidence behind it and its estimated annual impact.
- Priority matrix. Every issue placed on a grid of financial impact against effort, so quick wins and structural projects are visible at a glance.
- 90-day action plan. The first three to five actions, each with an owner, a measure and a date.
For example, a diagnostic might show that receivables average 58 days against 30-day terms. On $2.4 million of annual credit sales, every day of collection ties up roughly $6,575 ($2,400,000 ÷ 365). Bringing collection from 58 to 40 days would release about $118,000 of cash, often more than the owner expected to find anywhere.
Timeline and how it runs
A typical diagnostic runs three to five weeks after documents arrive. Interviews and walk-throughs happen online by video call or in person, whichever suits your team.
- Week 1: document review. We read statements, ageing reports and sales data, and send a short list of questions.
- Weeks 1–2: interviews and process walk-throughs. Usually the owner, the person who runs operations, the person who handles finance, and one or two front-line staff.
- Weeks 2–4: analysis. Margin, cash and capacity calculations, plus the organisation map.
- Final week: findings session. We present the report, agree the priorities with you, and finalise the 90-day plan.
How results are measured
A diagnostic is measured by whether its numbers hold up and whether its plan gets acted on. We define the measure for each action in the plan (days sales outstanding, rework rate, gross margin on a service line, owner hours per week) and record the starting value, so progress can be checked at 30, 60 and 90 days. The owner KPI scorecard guide explains how those measures are defined.
Mistakes to avoid
Owners who get the most from a diagnostic avoid a few common traps.
- Fixing before measuring. Hiring a salesperson to fix a cash problem that is really a collections problem.
- Hiding the awkward data. A diagnostic built on partial records produces confident but wrong priorities.
- Interviewing only managers. Front-line staff usually know exactly where work gets redone.
- Treating every finding as urgent. The matrix exists so that you can leave low-value issues alone for now.
Next step
If you want to know whether a diagnostic fits your situation, text or call (604) 632-4959 or email Ali@Sedighi.ca with your sector, headcount and the issue you see. The initial 30-minute consultation is free. You can also review project pricing or see how diagnostic findings feed into financial clarity work.
Frequently asked questions
How long does a diagnostic take?
Typically three to five weeks from receiving your documents, depending on the size of the business and how quickly records and interviews can be arranged. The timeline is set out in your proposal.
What will you need from us?
Three years of financial statements, a current receivables and payables ageing, sales or job data by customer and service, an organisation chart if one exists, and two to four hours of interviews across the owner and key staff.
What does it cost?
A diagnostic is priced as a project, within the $3,500 to $25,000 project range, plus GST/HST based on your province. Scope depends mainly on the number of locations, service lines and people to interview, and the price is fixed in writing before work starts.
Do we have to continue with you afterwards?
No. The report, priority matrix and 90-day plan are yours. Some clients carry the plan themselves, some book hourly check-ins, and some move into a project or implementation support.