We are almost halfway through 2016! Now is a perfect time to review your business to determine if you are meeting the year-end goals you established for your business. Even if you feel you are struggling, there are always strategies you can implement now to get you where you planned to be. Below are just a few areas to review to help you determine if you are on the path toward success.
- Is your revenue increasing compared to prior years, or are sales flat (or even less than last year)? If you don’t have actual growth (not just higher revenue due to increased prices), it can be a signal that your sales strategy may need to be updated.
- Do you have plenty of money in the bank or is cash flow tight? If you have difficulty paying your liabilities, that can be a signal that serious adjustments need to be made to turn your financial situation around. One of the main reasons businesses fail is poor cash flow. What financial strategies can you implement to improve your bank balance?
- Are you covering all your costs? Take time to analyze and make sure that your pricing covers every expense involved in selling your product/service. Be sure to calculate your overhead and fixed costs such as rent, insurance, utilities, labor, taxes, equipment, etc. into your pricing strategy.
- Are you charging the correct price for the services you offer? Aside from calculating your costs, it is also recommended to review the value of your product/service and compare your pricing to that of your competitors. It is not uncommon to find that the true value you are providing is seriously under-priced, especially in the service industry. If you are having a hard time determining value, consider asking your clients for feedback or consulting with a professional.
If you find you’re not on track, you have time to make adjustments to improve your situation before the end of the year. It’s a good idea to meet with your CPA, review your financial picture, and see what changes can be made to guarantee success for the next six months and beyond.
