How a Mid-Year Checkup Can Propel Your Business to Success

You’re probably not alone if you feel 2024 has gone by too quickly in the first half.

Any company would be wise to do a mid-year checkup as we approach the midpoint of the year, allowing them to make any necessary changes to position themselves for future success.

Entrepreneurs, big and small, should ask themselves a few questions at the outset, like are your goals and priorities from the beginning of the year still aligned? In an environment of high interest rates and inflation, priorities can change quickly, so it’s important to regularly review your goals.

Here you’ll find tips to help you evaluate your business, take advantage of opportunities, and set yourself up for success.

Review your cash flow and inventory

Cash flow can make or break your business, so it should be constantly monitored. Take a close look at your cash flow, expenses, and revenue sources to ensure you have the capital and resources necessary to optimize your cash flow.

Consulting with your company’s financial advisors and bankers can also help identify opportunities to strengthen your cash flow, such as: B. Implementing a cash management solution that can streamline operations and save you time and money through remote deposits and remittances, analytics, and more.

It’s also a good idea to take inventory and prepare for fluctuations in demand. This is especially true for businesses that experience seasonal peaks around the holidays. There are often discounts available when you buy in bulk, but like many things in life, it’s important to find the right balance so you don’t deplete your cash flow while you have products in stock.

Review supplier relationships

As with cash flow, it is also important to find a balance between paying suppliers early and deferring liabilities. Work with key suppliers to build supplier relationships and negotiate better terms.

Suppliers can get benefits such as discounts if they pay early. The average discount that suppliers offer to companies for early payment usually ranges from 1 to 2 percent of the invoice amount. The exact terms are often expressed in a format like “2/10 net 30”. This means that if the invoice is paid within 10 days, the buyer can get a 2% discount, otherwise the full amount will be paid 30 days later.

Reviewing supplier relationships and payment terms can be a great way to strengthen your business for the future.

Get Creative

Map out the key sales periods for your business throughout the year and beyond and make a plan for how you will promote them. Using social media can be a powerful tool for small businesses, especially those that have online sales set up on their profiles or business websites.

Running promotions, sales and even contests on social media, on your website and in-store can be a great way to increase sales while attracting customers and building loyalty. Collaborating with other small businesses in your area on promotions can also help build your reputation in the communities where you operate.

Consult a trusted advisor

Having the right team around you can have a huge impact on the success of your business.

Conducting a mid-year review with key advisors such as accountants, lawyers, financial advisors and bankers is a good way to assess where your company is at from different perspectives and plan for the rest of the year.