Midyear Check-In to Review Your Business Success

Candy Messer article 4 graphicWe are half way through 2016 and it’s time to review your business to date to determine how you’re doing. Are you meeting the success goals you established for yourself, or are you struggling and wondering what changes should be implemented?

Below are a few areas in your business to review to help you determine if you are on the path for success:

•    Is your revenue increasing compared to prior years, or are sales flat (or even less than last year)? If you don’t have actual growth (not just higher revenue due to increased prices), it can be a signal that your sales strategy may need to be updated.

•    Do you have plenty of money in the bank, or is cash flow tight? If you have difficulty paying your liabilities, that can be a signal that serious adjustments need to be made to turn your financial situation around. One of the main reasons businesses fail is poor cash flow. What expenses can you minimize to improve your bank balance?

•     Are you charging the correct price for the services you offer? It’s important to analyze all of your costs to make sure your pricing covers every expense involved in selling your product, including overhead costs. Often, entrepreneurs underprice their services by not realizing the full costs involved in providing the product/service in the marketplace. Be sure to calculate your fixed costs, including rent, insurance, utilities, labor, taxes, and more, into your pricing strategy.

If you find you’re not on track, you have time to make adjustments to improve your situation before the end of the year. It’s a good idea to meet with your CPA, review your financial picture, and see what changes can be made to guarantee success for the next six months and beyond.

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