It’s time for us to do a mid-year review! It’s similar to going to the doctor for your annual physical (though I hope you visit your doctor more than annually!) where they take your blood pressure, weight, and run blood tests. A mid-year check for businesses encompasses the same thing! This is truly something that you should do twice a year; one at the beginning of the year, and one in the middle. As it currently stands, we have a couple of months left to get those business goals reigned in! A mid-year check means that we’ll need a few things; an accountant (which you should already have!), and all numbers for the year. This is going to be a rapid fire check.
There will be approximately 15 items, write them down (or answer in your head), and answer “Yes”, or “No” for each item.
- Is your business profitable?
- Do you know how to leverage your business finances to close more profitable deals?
- Do you know that your financial statement data is a strategic weapon that can be deployed as a real asset in this competitive marketplace?
- Has your financial data been translated into actionable steps?
- Do you know how to read or comprehend your financial statements?
- Are you focused on increasing sales, but have run into cash flow problems?
- Do you receive monthly, quarterly, or annual financial statements from your accountant?
- Were you ever informed on your KPI? (Check the previous post if that’s a no!)
- Do you know how your business compares to others within your industry?
- Are you not receiving payments quickly, and if so, do you know why?
- Do you know the value of your brand? (Yes, your brand has a value!)
- Are you certain that your taxes are being optimized? (In a legal manner!)
- Are your business trends in every profitable area highlighted to assess improvement?
- Do you have targets for financial performance?
- Do you have sales and production targets?
This may have been a brief one, but this is a rapid-fire segment that can be re-used. Being an accountant for small business owners, I see many of you that fail to do this mid-year checkup. An important thing to keep in mind is that all mistakes can be corrected, so if you’re on the lower end of the spectrum with the amount of times you answered “Yes”, that’s okay; you have time to fix it! A mid-year check is also designed to prevent your business from failing (and in truth, it has worked for me!). If you can’t make heads or tails of your business, lack P&L statements, profit margin statements, then hire an accountant; get some help! Your mid-year checkup is here, and I am the doctor that can help bring your business back to good health!