The aim of this study was to determine financial condition and business performance of a small company Fanat-Jadrijević Ltd. For this purpose, the analysis of external and internal environment of enterprises was performed, as well as the analysis of the financial performance indicators and Altman's financial distress ratio or Z-score. PESTLE analysis, the analysis and assessment of company vulnerability and technology analysis were used for the external enviroment analysis.The business environment, customers, suppliers and competitors were analysed and the Porter's five forces model was applied. The internal environment was analysed through the analysis of organisational structure, organisational culture and enterprise resources (financial and human resources). For the calculation of performance indicators (indicators of liquidity, indebtedness, activity, profitability, economy and Altman's financial distress ratio) figures were taken from the financial statements (balance sheet and income statement) for 2013, 2014 and 2015. Based on the obtained results, SWOT analysis was performed and TOWS matrix was used. It can be concluded that company should focus more on the area of marketing in order to make the market aware of the products they offer. Similarly, decentralisation should be carried out and lower-level employees should be included in the decision-making process as well. Business decisions should not be made only at the top. The company should consider entering some emerging markets and keep up with the market events continuously.