With 2019 halfway over, it's a great time to
take stock of how your business has done for the first half of the year and make any necessary adjustments to meet your financial goals for the entire year.
Competitor
Analysis
How are your tracking with your
competition? Is your gross profit margin within industry ranges or
below? What about your net profit? What about your overhead per
employee?
Sales
Are
you on track to make your 2019 revenue number? The first step is to check
your 2019 budget numbers for total revenue. (Don't have a budget? - Check with
us; we'd be delighted to discuss that service with you.)
Next,
get your Income Statement for June 2019 Year-to-Date and check the revenue
figure. Are you on track with your budget? If not, what strategies can you
put in place to boost your growth for the rest of 2019?
Profit
Looking
at the same Income Statement, check your net income figure. Are you on track
with what you planned? If so, great! If not, the reason is simple: it
will be either lower sales than expected or higher expenses than
expected.
If
your expenses are too high, you'll need to drill down into each of your expense
accounts, including cost of goods sold, to see which ones are higher than
expected. Were there some unanticipated costs? Does your pricing need to
be adjusted? Do you need more volume to cover your costs? This is where we
can help you with an analysis of where your opportunities are to increase
profit.
Cash
One
more place to look is your cash balance. If your balance is lower than you'd
like it to be, it could be because of some of the factors mentioned
above. It could also be because of unexpected purchases. If you need
help with improving your cash flow, we can help with strategies to do
that.
Mid-Year
Review
This mid-year review can help you head off any
small problems before they grow into big ones throughout the rest of the year.
And it can keep you on track so you can meet your 2019 business goals.