Midyear Review of Business Should Be More Than Financials
Every year a business begins with a set of objectives for the year ahead. Many may encounter a few setbacks along the way, but eventually reach their objectives with some successes and lessons learned. The middle of the year is the perfect time to stop, take a breather, and reassess a business’s objectives.
A midyear review can help management determine which objectives are still “meetable” and those which may need adjusting or perhaps even eliminated. Naturally, this will involve looking at your financials. There are various ratios and analyticals that can tell you if your cash flow is strong, are your liabilities manageable, and are you on target to reach your profitability goals. But don’t stop there.
3 key areas
There are three other key areas of your business you should review at midyear:
- Human Resources: Your people are your most valuable asset. How is your employee turnover rate compared with last year or previous years? High employee turnover could be an indicator of other underlying problems, such as poor training, lax management or low employee morale.
- Sales and marketing: Are you meeting your goals for new sales, in both sales volume and number of new customers? What is your return on investment (ROI) and are you generating an adequate return on investment (ROI)? You may need to enhance your tracking of existing marketing efforts so you can gauge marketing ROI going forward.
- Services: How satisfied are your customers with the level of service being provided? You may need to adjust your methods of measuring customer satisfaction to meet your strategic goals.
Don’t wait to the end of the year to assess the progress of your strategic plan. Conduct a midyear review and make any adjustments necessary to help ensure success. Let us know how we can help.