June is over. I know, it’s hard to believe… the year is half over. As we all say – time flies.
In our business year, it’s half-time. The first half is done and the second half is about to start. Now is the time to solidify the second half-year business plan or the 2HYBP.
Your initial business plan was likely published in November or December with data and assumptions that are now ancient. Fact: We now have better data, a solid history for the year, and a good read about orders and sales for the second half of the year.
It’s time now to re-assess and look at your second quarter goals; take stock where you are and readjust your sales, margin, expense, and net income targets – either up or down – more realistic. Start planning the quarterly financial close so you can get your data finalized quickly. Many general ledger accounts can be analyzed and finalized early. Get started on the close early.
As a business leader, it’s now time now to begin to 2HYBP planning cycle – start getting your historical info, meet with your team, and prepare to update your operating plan for the second half of the year.
I am working with a client now with 2 business segments – a wholesale model and a direct to consumer business. The initial targets we set for each business made sense in December, but now with actual results, we are making some significant changes with the direct to consumer business. We didn’t hit the targets we thought we would – partially our fault and partially the reality of the market. Nevertheless, we are redoing the 2HYBP so we finish the year strong. You need to do the same.
This time of the year, I hunker down and go into semi-monk mode. I work remotely for the entire month of July. I focus on getting solid June closes with useful reporting packages with all of my clients by mid-July. We re-cast the 2HYBP to ensure we are on pace to hit or exceed our initial goals. We do our planning meetings early in August and get everyone on the same page, rowing in the same direction to hit our targets.
Quarterly, I recommend getting out of the office with your team to ensure everyone is in sync. People take vacations in the summer, so get the meeting on everyone’s calendar now and take time to evaluate your half-time – then get after it and finish strong!