Key Performance Indicators help us determine how effectively our company is achieving its key business objectives.
A mid-year P&L review is a great way to refocus and reassess your goals and priorities and evaluate whether you’re on the right path.
For most of us, we sort of know how we are doing – we have a back of the envelope feel, but really we haven’t looked actual numbers compared to budget since last year’s budget process.
For small-business owners, conducting a mid-year check-in is an essential part of staying on track for meeting annual revenue and growth goals. Take a holistic approach to the review – it is more than comparing actuals to budget.
- Itemize your goals and review the metrics used to measure them.
- Assess performance to date and solve for gaps.
- Review the pipeline going into the second half of the year, is Business Development on track?
- Research your competitive landscape – don’t be blindsided by a disruptive innovation from one of your biggest rivals.
- Are your taxes on track? If your revenue has increased since your initial projections, your tax liability might have changed, too. To make sure you don’t incur underpayment penalties, take time during your mid-year check-in to reexamine your calculations. Or share your financials with your CPA so they can re-evaluate your expected tax liabilities.
You may be exceeding our growth goals in some areas of your business, but still behind in others. By doing a thorough analysis, we can identify some gaps in your business efforts. A mid-year review provides an opportunity to reallocate time and resources to strengthen your business and head into the second half of the year with a renewed focus on success.
Take a look at your mid-year financials. Are you on target to achieve your 2016 goals? Do you need to adjust your strategy? Or give us a call if you would like helping assessing your performance.