Today sustaining and growing business at any level is a challenge.  Major companies have cutback which has dramatically affected many small businesses.  We are at the mid-year point which is a good time to take stock and plan for the second half.

What should you be reviewing and adjusting?  I recommend answering the following questions:

1. Where is the current year revenue compared to the budget and last year? What do you see for the next six months, higher or lower?  This is important to know as it impacts expense levels and capital spending.
2. Where are the current year expenses compared to budget and last year? Did you have any surprises?  What do you anticipate for the second half of 2009?
3. How much have your pared down your staff? How will you operate when the recovery starts?  Who do you really need at the outset?
4. What are your plans for purchasing equipment and facility upgrades? Do you need to own?  Have you considered leasing?
5. What is working in your marketing activities and what do you need to change? How will changes impact your expense level?
6. How are you managing accounts receivable and payable? Are customers paying in about the same time as last year or lagging?  How are you paying your vendors?  How old are your oldest receivables?  The older they get, the harder they are to collect.
7. What are your plans for bonus payout? About mid-year employees start to think about and even inquire about their bonus.  Will you need to delay the payout in order to preserve cash?  What will you say to those employees who will be affected?
8. What are your plans for when the recovery starts? Are you developing new products or services? How do you plan to announce the product or service? How far behind the competition will you be when the recovery starts if you have no new product or services to offer?

Too many businesses wait to evaluate their results until the after the year is over. Failure to review now means the inability to react and respond in a timely manner. Do it now!