Time for Your Mid-Year Review
Can you believe that we are already beyond the half-way point of 2020? This is a great time to take a look at how your business did for the first six months and see if you are on track for meeting your financial goals by the end of the year.
Wait, what? You didn’t set financial goals for your business? It’s not too late. Let me help you put some goals in place for the remainder of the year.
On Track for Sales?
Are you on track to make your 2020 revenue number? If your accounting records are up to date, you’ll want to pull a Profit & Loss Statement and look at your total Sales/Income line. Because we are half-way through the year, your total Income should be approximately half of your annual goal (adjusted for seasonality, if significant).
Look at your report on a cash basis. Translation: Sales/Income means “money in the bank.”
How are you doing? Pat yourself on the back if you are half-way to your goal! If you aren’t, consider what you can do now to boost your sales for the rest of 2020. Here are a few ideas:
Who owes you money? Send friendly reminders and grab that low-hanging fruit.
Review your marketing avenues. What’s working and what’s not?
Adjust your pricing.
Bundle complimentary services or products to increase sales.
Create your own holiday and celebrate by offering special discounts on certain products.
On Track for Profit?
Looking at the same Profit & Loss Statement, check your NET INCOME figure. Are you on track with what you planned? If so, great! If not, it’s because of two factors: lower-than-expected sales or higher-than-expected expenses, or a combination of the two.
If your expenses are too high, drill down into each of your expense accounts, including cost of goods sold, to determine why they are higher than expected. Ask yourself these questions as you consider these costs:
Were there unanticipated costs in a particular category?
Are you paying for goods or services that provide little or no benefit?
On Track for Cash?
Cash is the lifeblood of your business. If your cash balance is lower than you’d like it to be, it could be because of the factors mentioned above; however, that’s not always the case. Have you made an investment in new equipment? Are you paying down old debt? Did you get hit with a surprise when your tax return was filed?
One of the ways I help my clients is by showing them a better way to handle cash flow. It is the missing link for nearly every business. Let me help you create a system that will allow you to pay yourself what you’re worth as a business owner, invest in your future, reduce your debt, and eliminate surprises at tax time.
Mid-Year Review
A mid-year review can help you head off any small problems before they grow into big ones throughout the rest of the year. Now is the time to look at where you are and get back on track so you can meet your 2020 business goals.
So … how are your doing? I’d love to know! Reach out to me via social media or the contact information below.
