Mid year business review is a short, planned check of how your firm is doing at the halfway point of the year. It takes one afternoon. You look at cash, sales, costs, suppliers and goals, then you decide what to change for the second half. Set aside three hours, bring your books, and work through the list below in order.
Before you start
Pick a date and block the time. Invite the one or two people who know the numbers best, such as your bookkeeper and your sales lead. Pull the same few reports every time so you can compare year after year: the profit and loss statement, the balance sheet, the bank statements and the list of unpaid invoices.
Use the first six months of the financial year, not just the calendar year. If your year ends in March or September, your halfway point is different from a December year end. Write the dates at the top of the page so nobody is confused.
Step 1: Check your cash
Cash keeps a small firm alive. Profit on paper does not pay the rent. Start with the bank balance today, then list what you must pay in the next 90 days: wages, rent, suppliers, loan repayments and taxes. Next, list what customers should pay you in the same period.
Look at your unpaid invoices. Sort them by age. Anything over 60 days old needs a call this week. If the same customers are always late, change your terms or ask for a deposit. A simple rule helps: know how many weeks of costs your cash can cover. The right cushion depends on how steady your sales are.
Step 2: Review sales and margins
Compare sales for the first six months to your plan and to the same months last year. Then go one level down. Which products or services sold best? Which customers gave you the most work? Which ones took a lot of time and paid little?
Work out your gross margin for each main product or service. Gross margin is sales minus the direct cost of delivering them, shown as a share of sales. If a line earns a thin margin and eats your time, raise the price, cut it, or sell it in a bundle. Also note how many customers came back. Repeat buyers cost far less to win than new ones.
Step 3: Go through your costs
Print the list of every regular payment. Subscriptions, software, insurance, phone plans and leases tend to creep up. Mark each as needed, useful or unused. Cancel the unused ones at once. Ask for a better rate on the useful ones.
Then check your biggest cost, which is usually people or rent. Ask whether the hours worked match the work coming in. You do not need to cut anything. You do need to know the answer before the busy season starts.
Step 4: Talk to your suppliers
Your suppliers are part of your business. List your top five. For each, note the price, the delivery time, how often orders arrive wrong, and the payment terms. Compare at least one other quote for your largest item. You may not switch, but you will have facts when you ask for a discount or longer payment terms.
Check that you are not too dependent on one supplier. If one firm supplies most of your stock and they fail, you stop. Name a backup now, while there is no pressure.
Step 5: Confirm your tax dates and set goals
A mid year business review is also a good time to check your tax calendar. In Singapore, a company generally has to file its estimated chargeable income, known as ECI, within three months of its financial year end. A company can skip this when its yearly revenue is S$5 million or less and its ECI is nil, and it does not need to tell IRAS. Look up your own dates, write them in your diary, and tell your accountant. This is general information, so check the current rules with IRAS or a qualified adviser for your own case.
Now look forward. Pick three goals for the next six months. Make each one a number with a date, such as "cut unpaid invoices over 60 days to zero by 30 September". Give each goal one owner. Too many goals means none get done.
Close the review
End with a one page summary. Write down your cash position, your three best findings, your three actions and who does each one. Put the next check on the calendar for three months from now. A short quarterly look keeps small problems small.
Keep the page. When the year ends, you can see what you planned, what happened, and what you learned. That record makes the next mid year business review faster and sharper.