Well,
the second quarter is just ending. June 30th is Monday and July 4th
weekend is NEXT WEEKEND! 2014 is halfway
over.
There is one more business day of the year to bring your business's Q2 objects down the field. It's just a measuring point, but a very important one. From a CFO's perspective after Monday can be
the ‘lull before the storm’. It is about
to be an extremely busy and important time of year.
We
need to take a deep half-year look - see what we did well, things that we didn’t,
and look forward and tune-up the second half year strategy and business plan.
It
is halftime. In sport, during halftime the coach and the players review the
first half's results, evaluate the competition, and develop a strategy and action plan for the
second half.
That's
exactly what CFO’s and business owners must do right now.
How
did you do during the first half? What were your sales? What was your gross
profit? How do they compare to last year's numbers? Compared to plan? How was your customer
profitability? Expenses? Overall Profitability? DSO? Inventory levels? Cash in
bank?
It
is extremely important to take a critical look your business profit and cash drivers
- where you are today and prepare a second-quarter plan. You need to check the scoreboard and develop what-if’s
for the second half of the year. You need to plan your cash needs for the rest
of the year and identify efficiency improvements. You need to provide your team some
inspiration. What’s their mood? What support do they need?
Check
and, if necessary, reset your mindset!
So,
use this ‘lull before the storm’ to get prepared now. Take a couple hours and put pen to paper; numbers to Excel.
-
Review
your first 2 quarters’ objectives - top 3 overall business goals
-
List
some wins for the year so far
-
Begin
prepping your team for the month end close – many balance sheet reconciliations
and checklist items can get done in advance. Do them next week. Get solid numbers fast.
-
Identify
all your business drivers (growth, profit, cash flow drivers) and have your
historical data formatted. If you haven’t
done so, do.
-
Plan
Cash needs now – update your 13 week cash flow forecast
-
Set-up
the Q2 Team Meeting to review the scoreboard results and the 2nd Half-Year
Business Plan – set the deadline on your calendar now. How about July 18th or the 23rd? Book it - if you're a big company or a one man show, book it on your calendar.
- Also,
get prepared to take some time over the fourth of July weekend for some
R&R. It is summer and life is moving
fast. Get outside and enjoy it!
T
