Mid-Year Checkup: How to Set Your Business Up for Future Success

If you feel like the first half of 2024 has flown by, you’re probably not alone.

As we reach the mid-point of the year, it is always a good idea for any business to perform a checkup so they can pivot as needed to be successful in the future.

Business owners – small and large – should start by asking themselves a few questions, like are your goals and priorities from the beginning of the year still aligned? In a high interest rate and inflationary environment, priorities can shift quickly, so it is important to revisit your goals regularly.

Here are tips to help evaluate your business, unlock opportunities and set yourself up for success.

Cash Flow and Inventory Checkup

You should always have a pulse on your cash flow, as it can make or break the business. Perform a deep dive on your cash flow, expenses and revenue streams to ensure you have the capital and resources needed to keep your cash flow optimized.

Speaking with your business’ financial advisor or banker can also help identify opportunities to strengthen your cash flow, such as implementing cash management solutions that can streamline operations through remote deposits and transfers, analytics and more to save time and money.

It’s also a good idea to take stock of your inventory levels so you’re prepared for ebbs and flows in demand, particularly for businesses that experience seasonal spikes around the holidays. Buying in bulk can often provide discounts, but like many things in life it is about finding the right balance, so you don’t strain your cash flow while products sit in storage.

Review Your Vendor Relationships

Just like with cash flow, it is also important to strike a balance between paying vendors early and extending payables. Work with your key vendors to build your supplier relationships and negotiate better terms.

Paying suppliers early can offer advantages like discounts – with the average discount a supplier might offer a business for early payment typically falling within the range of 1% to 2% of the invoice amount. The specific terms are often expressed in a format like “2/10 net 30,” which means the buyer can take a 2% discount if the invoice is paid within 10 days, otherwise, the full amount is due in 30 days.

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

Get Creative

Look ahead to key sales moments for your business for the remainder of the year – and beyond – and put a plan in place for how you will promote them. Leveraging social media can be a powerful tool for small businesses, particularly for those set up for online sales on their profiles or business website.

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

Speak with Your Trusted Advisors

Having the right team around you can have a major impact in the success of your business.

Setting time with your key advisors such as your accountant, attorney, financial advisor and banker for a mid-year checkup can be a great way to evaluate the business’ current state from different angles and put plans in place for the remainder of the year.