Techbiz Webinar Presented by Tolulope Omoleye

1. Health Check for Tech
Startups
As a Tech Startup, it is crucial to regularly assess the health of your
business. In this presentation, we'll explore the key components of a health
check process.
TO by Tolulope Omoleye

2. Background
1 FX Volatility
Continued FX volatility
has negatively impacted
costs for many
businesses.
2 Funding Winter
VCs and other Funders
have reduced their
funding on a global basis
and NG startups are not
excluded.
3 Inflation/PP
High cost of living and
rising inflation has
diluted purchasing power
on a corporate and
individual basis. This has
reduced revenue for
many companies.

3. The effect of the above challenges can
be summarised below:
1. Reduced revenue
2. Cash shortages
3. Increased strain on resources

4. What is a Health Check
• High level review of your company's performance and status
• Review across different perspectives-not only limited to financial or technical side of the business
• Can be highly structured or very light
• Key objective is to ascertain status and create a plan for improvement.

5. Importance of Health Check
1 Awareness
A health check reveals
your company's status.
This could reveal
opportunities or risks.
2 Optimising
Resources
By assessing your status
and performance, you
are empowered to
optimise your resources
and allocate resources
effectively.
3 Improve Decision
Making
Health checks provide
valuable insights that
can inform data-driven
decision making .

6. What is
Important?
• You cannot afford to carry out this exercise every month or quarterly
• Identify key areas and themes that are important for sustainability
• These themes may change over time but ideally should not be more than 4.
• These themes form your reference point and Guide for a health check.

7. Sample Key Themes
Financial
Wellbeing
• What are
your Key
Financial
Metrics?
• What are
your top
expenses
and Revenue
Sources
• What is your
primary
source of
funding?
• Significant
Financial
Obligations?
Actual or
Contingent
Operation
al
Assessme
nt
• Which of
your
processe
s can be
optimise
d.
• What
/Who are
your
depende
ncies?
• What can
be
automate
d?
• What is
broken or
is about
to break?
• How are
we
perceived
online?
Regulatory/Co
mpliance
Position
• Why would
Regulators/
Partner shut
you down
today?
• Why would a
customer
report you to
Authorities?
• What are you
doing now that
exposes you to
fines over a set
threshold?
People
Evaluation
• Who are your
key talents?
Any Key Man
Risks?
• What key
resource is
missing on
your team?
• Are you
overstaffed,
understaffed,
rightly
staffed?

8. Take note of these…
Financials
• Subsidising customers or partners
• Not tracking your expenses,no budget?
• Not tracking your financial metrics
• No Contingent Funding Plan
Processes
• Ignoring Quality Assurance for product
led companies
• Undocumented /non-standardised
processes
• People ignoring rules
Product
• Burning cash excessively on marketing
or freebies
• Constant deviation from Product Roadmap
• Increasing CAC with no tangible
Return/LTV
• Constant bugs and platform failures
People
• Hiring specialists too early.
• Revolving doors
• Culture dilution

9. An Example of a Health Check Report
• CAC is way higher than our peers
• Cost to Revenue ratio is increasingly rapidly
• Significant adverse media from customer callout
• Our cash reserve can not withstand stress events
• Ex employees have been poaching current employees
• No line of credit from bank
• Our Bank Partners have sent us three warnings on KYC deficiency
• Missed all release deadlines for the last two quarters
• Etc

10. What you should walk away with
1 Early Problem
Detection
Regular health checks
help identify issues early
on, allowing prompt
action and preventing
them from escalating.
2 Continuous
Improvement
By regularly evaluating
performance, startups
can consistently improve
and remain competitive.
3 Enhanced
Decision Making
Data-driven insights from
health checks enable
informed decision
making and strategic
planning.

11. 1 A Plan of Action (OKRs)
2
A Timeline for Execution
3 Review Date

12. Thank you