Why Every Small Business Needs a Mid-Year Assessment

Author: Gina Hall | July 28, 2016

Congratulations, you’ve made it halfway through the 2016! The good news is that you and your small business have made it this far. Pat yourself on the back and gear up for the next six months.

Conducting a mid-year financial assessment can save time and money, yet many entrepreneurs fail to set aside time for this critical exercise. The summer slowdown is the ideal period to regroup, take stock, and reassess your goals as you head toward the holidays—yes, the holidays will be here before you know it. Don’t let them sneak up on you.

Here are some simple steps you can take right now to ensure you stay on track through the end of the year.

  1. Keep on top of your taxes

    Solo entrepreneur? You must set aside your own tax payments and file on a quarterly basis. If you haven’t already, open a separate bank account dedicated to saving the estimated tax out of each check. Don’t let your business practices get too sloppy and informal, and resist the urge to mix business and personal income when one or the other isn’t as flush as you’d like it to be. If your savings are depleted, promise yourself to save six to eight months of cash to cover both business and household expenses in case of financial crisis.
    Unsure about how much to withhold? Consult with a tax specialist. Mid-year is a great time to make sure you’re caught up on your taxes so there aren’t any surprises come next April.

  2. Refresh your small business plan

    You’re a responsible entrepreneur, so we’re sure you wrote down your business goals at the beginning of the year. That said, mid-year is a great time to pull out that business plan and re-evaluate your goals. Establish where you are with your long-term goals and shape your business plan reallocate your time and resources appropriately.

  3. Manage your cash flow

    Staying on top of your cash flow is a weekly challenge, but a mid-year reassessment of your entire small business strategy is a smart idea. If you’re consistently hitting your revenue goals, consider raising your revenue target. Just scraping by? See about financial solutions, such as Fundbox, to help manage any gaps that may arise in your cash flow.

  4. Think about cybersecurity

    How long has it been since you updated your security systems? Criminals are constantly coming up with new ways to steal your online information, so make this a top priority. Establish policies to ensure your staffers change passwords regularly, and always employ the most up-to-date security software.

  5. Performance reviews

    If you run a company with multiple staffers, now is a good time to check in with them to make sure they’re on track—or if they need some course correction. If you remove some red tape, your staffers could easily boost their productivity and your bottom line. Don’t tie these mid-year reviews to salary or job security. Use them as a sounding board to make your company run more efficiently.

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