The half time siren has blown and many of us dispersed for the “long break”. Now it’s time to get back on the field and ensure a strong finish to the financial year.
Before you get caught up in chasing the ball, take some time to hone your strategy for tackling the next 6 months.
Check the Scoreboard
How did the first half of the year go? Are your sales and profits as you had expected? Did you implement what you had intended to? How far have you progressed against your plan?
If things are not on track then now is the time to modify your game plan.
Perform some What-If Scenarios
A What-If analysis involves taking what you are doing now and forecasting what might happen if you changed things slightly.
Use the results from the first half to model what would happen if you adjusted your product line, changed your pricing or discount structure, approached new customers or collected your debts more quickly.
With basic accounting information this is not as difficult to do as it sounds. And don’t forget…we are here to help!
Review Stock and Efficiency Opportunities
If demand for some or all of your products has not been as expected in the first six months then you need to take a careful look at your stock levels.
How do the first six months compare with the same period last year? Does this reflect a trend that requires you to adjust your stock levels?
Review the capacity and productivity of your team. Will there be any problems in meeting demand?
Plan Your Cash Requirements
Does your business have surplus cash available to meet its needs? If not, you need to focus your what-if analysis on finding and freeing up cash.
Will the business have the cash when its needed? If there’s a shortfall or timing issue you need to plan how you will address this.
Consider Opportunities to Upscale
Sometimes, increasing profits requires increased scale. So consider what you might do if you invested MORE resources over the next six months.
What if you outsourced to complete a stagnant project? (Check out our article Outsourcing for Growth)
What if you hired an assistant so your time could be spent on revenue generation?
What if you employed new technology to make your life easier? (Check out Five Apps that could make you More Profitable).
Don’t Forget the Half Time Speech
When your team begins to trickle back to work after some well-earned R&R, it’s a good time for a motivation talk. Refocus your staff on the game plan and motivate them to start the second half strong.
Need a bit of inspiration? Check out the video.[video:http://youtu.be/HKZSQDHLtrY width:560 height:315 align:left]
If you would like help in completing a what-if analysis please contact us to set up an appointment.
This is why we are here…to help you reach a brighter future.