Business Financial Health Check

It varies by industry. Service businesses and SaaS typically achieve 15–35% net margin; retail and manufacturing often run 5–10%. Gross margins above 40% give flexibility for growth spending. This tool benchmarks your results against your specific industry average.

Most advisors recommend 6–12 months of operating runway. Under 3 months is a danger zone requiring immediate action — cut costs, accelerate revenue, or seek financing. Pre-revenue startups should aim for 12–18 months before needing another round.

A marketing ROI of 5:1 (500%) is considered strong — $5 profit for every $1 spent. ROAS above 4x is a solid benchmark for paid channels. Under 2x ROAS usually means the campaign isn’t covering fulfillment costs.

Break-even units = Fixed Costs ÷ (Price − Variable Cost per Unit). Multiply by price to get break-even revenue. The contribution margin must cover all fixed costs before your business turns a profit.

A 10% net margin is excellent for a restaurant but low for SaaS. Each industry has different cost structures, competitive dynamics, and growth expectations. The health score compares your metrics against industry-specific averages for a fair assessment.

Focus on whichever metric sits furthest below its benchmark. For most businesses that’s net margin or runway. A 5–10% price increase or cutting the top 3 operating expenses compounds across your full revenue base and lifts your score fastest.