5 things to keep your eyes on this summer
It’s summer, and you’re planning a three-day weekend or vacation with your kids. What does that mean for your business? Here are some things to watch during the summer months.
- Budgeting – Remember that your budget is your business plan for the year. Compare your budget to your actual YTD results. It’s important to make changes to your company operations so they will get you to where you need to be to meet your goals.
- Inventory Control – You should be continually evaluating your inventory. Do you have sufficient stock in your fast-moving items? Now is the time to have a sale, discount older merchandise, or eliminate items that aren’t selling. Any cash you can get from obsolete product is money you can use to buy active inventory and add to your bottom line.
- Staffing – Everyone wants to take vacation. Plan effectively so that you always have sufficient departmental coverage. Now is a good time to get people cross trained. Plus, in the financial arena, it is important to mandate vacations so someone new can handle the company’s financial transactions throughout the company. This is a first line of protection against fraud.
- Bank Compliance – Your bank reporting isn’t on vacation during the summer. Avoid unnecessary scrutiny and let the bank worry about someone else. Report on a timely basis. Be sure that your monthly borrowing base is submitted correctly and completely. If you have a line of credit, make sure that you are tracking your covenants. It’s much easier to take time to adjust your balance sheet to assure compliance, than trying to make things work at year end.
- Review operations to look for improvement – The old adage, “If it ain’t broke, don’t fix it” flies in the face of innovation and progress. If you haven’t changed a process in two years, take the time during the summer to review and analyze it. If you haven’t talked to your line employees about their work, take the time this summer to see how they think their jobs should be done. They’re the ones closest to it, and best able to help you save time and money.
People let their guard down during the summer. Don’t do it!! Take the time to review your operations and controls. Then, when the fall starts, you’ll be in a lot better shape to drive profitability through year end.