As we enter the second half of the year,
many people are thinking of summer vacation plans; however, most CEO’s are
thinking about their business. and how the year will be over before
they know it! That said, CEO’s are an optimist bunch and quickly realize
there is still half of the year left to ensure your business finishes the 2015 year
strong!
Take a look at these 4 things
CEO’s should be addressing now:
The following are important to
consider when performing your mid-year assessment.
1. Protect your ASSets: For
many organizations, the first part of 2015 has been strong. Now it’s time to
protect your assets and bottom line, while reducing risk. For many Business
Owners, it is truly easier to make money than to keep it. Protecting what you
have made is critical to preserving the longevity of the organization.
Investments in the organization are necessary to fuel continued growth and
evolution; however, these should be carefully calculated strategies with an
intended return and a ‘what if’ analysis. You should have a financial ceiling –
the most financial exposure you are willing to tolerate before altering your
course, should the investment not go according to plan. In addition, every company
should have a risk management and risk mitigation plan which identifies the
potential threats to the organization and outlines the processes, procedures
and tactical steps taken, to mitigate these risk.
2. Improve inefficiencies:
When times are tough, most people realize the importance of streamlining
processes, reducing unnecessary expenditures, and cutting the proverbial fat.
However, when times are good, these strategies are of equal importance. Every
dollar that can be dropped to the bottom line is simply more you will have to
invest in other strategic initiatives, increase shareholder value, and/or pay
your team for their contributions to success. Too many companies ignore this
fact during good times, because it is easier to overlook or deny these
inefficiencies in a time of increasing revenues.
3. Evaluate opportunities:
There is still time left in 2015 to implement and execute strategies for growth
of the organization. These opportunities need to be carefully vetted by your
Executive Management team, Board of Directors, and Chief Financial Officer.
Projecting not only the net income or ROI, but also the cash flow and tax
implications. This practice is necessary to ensure the long term success of the
venture.
4. Recasting projections: For
99% of companies, the first part of the year wasn’t exactly what was projected
and that trend of uncertainty will likely continue for the rest of 2015.
Therefore, recasting projections for the remainder of 2015 is critical to ensure
you are able to achieve the goal of EBITDA, net income, and increased
enterprise value.
At Envision Tax & Accounting we work with our clients to make sure they understand the ramifications of inefficient processes throughout their fiscal or calendar year. We help them find the best practices for their specific industry and help them to be proactive to ensure that successful close of the year. If you need guidance and or assistance with the aforementioned as you consider your mid-year evaluations and assessments, give us a call. We're here to help...
