The halftime break in any sporting match can be a real game changer. It’s an opportunity for the team to regroup and tweak their game plan to ensure a successful second half.
The half-year mark in each financial year should be no different. Business owners are wise to take the time to review their first half performance, adjust their plans for the second half and make that all important half time speech to ensure the team are motivated for the final push toward success.
How you go about reviewing and adjusting will depend on the size and complexity of your business. However, the checklist below provides you with a good place to start.
✓ Review first half financials.
Are you ahead or behind where you wanted to be? What are the reasons for divergence from planned result?
✓ Review first half performance.
What worked well and what didn’t? What impact has the competition had on your business? If you have specific targets or KPI’s, how have you fared against these?
✓ Review individual first half performance.
Now is a good time for a formal performance review with staff members. Again you want to ask what is working well and what is not, and compare performance against any specific targets or KPI’s.
✓ Revise second half targets and plans.
What changes do you need to make to do better in the second half? Do you need to shift your priorities? Do you need to make additional investment to move forward?
✓ Revise your cash flow forecast.
Update your cash flow forecast to reflect revised expectations and plans. Make sure your new plans aren’t going to put undue stress on your business.
✓ Be realistic!
This whole exercise is useless if you are not realistic about what’s really happening out there. Do your research before you start and make sure you have accurate numbers and a realistic understanding of what’s happening in your marketplace.