The purpose of a mid-year review is to improve your chances for success!
Effective business leadership not only handles day-to-day issues but also plans for contingencies and best/worst/most likely scenarios. Common concerns leading to a Mid-Year Review include:
- Finances: What steps can be taken to make more money? How about making sure you’re on-track to satisfy banking covenants and conditions? Is your cash flow strong or is a crisis on the horizon? Are your A/R agings in line?
- Sales: Is your sales pipeline full? Are you on schedule for net new customers? What is average revenue per customer? What are your customer acquisition costs?
- Marketing: Are your current marketing strategies working effectively? Are your online/digital, advertising, promotional, and other communication programs attracting new clients?
- Manufacturing: Is material sourcing a concern? Where do you stand with raw materials, work-in-process and finished goods, as related to job orders and delivery dates? Are customer rejects and other quality control measures in-line?
- Distribution: What is your inventory carrying cost, turnover and inventory-to-sales ratio? What are your warehouse capacity metrics? How is your performance in on-time shipments?
- Personnel: Are you staffed properly to support all departments’ goals through year-end? This is also a good time to insure you retain your top people and attract quality talent.
The purpose of a mid-year review is to improve your chances for success! This essentially boils down to three critical components: (a) evaluate business performance, (b) create solutions to address problems, (c) and provide critical management guidance. As a key part of your team, MyCFO works with you to develop innovative solutions and to establish systems to monitor success.
Keep in mind that complacency is the enemy of long-term business success — and nothing causes this more frequently than a short-term period of strong sales, profits and an abundance of cash. The result can be “We don’t have time for a mid-year review, we’re swamped and everything is going great.” However, the goal of any business should be long-term success, so preparing for the inevitable downturn, while enjoying plentiful resources, is an important commitment.
Don’t delay, improve your business today!
The time and money invested in a mid-year review can be minor in relation to the potential outcome. The professionals at MyCFO can offer invaluable expertise in this process. Contact us today for a free initial consultation!