Breaking Down Mid-Year Reviews
The end of June has arrived, and we are halfway through 2022. Has your business completed its mid-year review yet? Do you know what a mid-year review is? If the answer to either of those questions is “no,” let me help you grasp the importance of completing one now.
It’s an essential check-in—or check-up—on the goals you set (or should have set) for your business in January. It’s a time to equally review your present status and update business plans for the remainder of the year. If goals weren’t set at the beginning of the year, don’t fret! Taking time to assess how the year has been and casting projections for the rest of 2022 can be quite beneficial.
The entire purpose of reviewing a business at mid-year is to:
1. Monitor performance
2. Identify obstacles
3. Consider opportunities to increase revenue
4. Provide guidance for leadership
5. Reassess goals.
Carve out a small chunk of time to review each of these areas and finish 2022 strong.
The whole reason for performing a mid-year review is to evaluate how the business is tracking toward its year-end goals—period. Begin by taking a hard, objective look at previously-set goals and determine if you’re on track to achieve them.
This process should begin with a review of financial and operational data. A snapshot of the business’ profitability and any potential accounting errors can be provided by running the Profit and Loss Statement and Balance Sheet. Likewise, a year-to-year comparison of these financials should be prepared to identify factors contributing to revenue growth or decline. By examining these measurable indicators, you can gauge the company’s financial sustainability and plan accordingly.
What strategies have proven to be ineffective, or what is preventing you and your team from reaching your goals? Take a close look to determine which roadblocks you’re hitting or gaps in your operations. This could be inadequate staffing or a lack of cash flow. Maybe you do not have the proper systems in place, or there are too many distractions. Each business will have different obstacles, but once those are identified, create a plan to impact change and overcome them.
Identify areas of change since January that could blind you from new opportunities. Market fluctuations, supply-chain issues, inflation and more may weigh negatively on your mind, but don’t let these indicators stall progress. Are there new certifications and training that you or your team could benefit from achieving? That could be a new goal to add to the list. Can you diversify your business to set it apart from the competition? This could be adding a new product line or completely new services. New opportunities could be the boost your business needs to crush its goals.
A business’ success begins and ends with great leadership. Now is a good time to do a reality check and determine if you have created the company culture you want and have motivated your team to give 1000%. Ensure that employees are guided effectively and that goals and objectives are communicated clearly. Consider incentivizing goals that are met or crushed by defined numbers or timelines.
Goals are not set in stone and can be adjusted to adapt to business demands. Determine if the original goals were attainable and able to be measured. Praise successes in areas where you and your team have progressed or achieved stated goals. Examine any failures and learn from mistakes to facilitate improvement. Review action plans for the remainder of the year and alter business goals as needed. Let this reassessment be the catalyst required to achieve those goals by the year’s end.
Although this objective assessment requires time and dedication, it can prove to be a great reality check that will bolster your business’s performance over the remainder of the year. Remember that goals are about progress—not perfection.