Key Elements for a Mid-Year Business Check-In

As the halfway point of the year approaches, it’s the perfect time to assess where your business stands. A mid-year check-in allows you to fully evaluate financial performance, revisit goals, and make the necessary adjustments to stay on track. It’s also an opportunity to strengthen your relationship with your banker, ensuring you have the guidance and tools needed to navigate the second half of the year with confidence.

 

How do I conduct a mid-year business review?

Without knowing the right steps, a mid-year business review may seem like a hefty task. To begin, start by gathering your financial statements and performance metrics from the first half of the year, such as income statements, balance sheets, and cash flow documentation. As you analyze these documents, work to identify trends in revenue, expenses, and profitability. 

Reassess the business goals you set at the beginning of the year. Determine whether you are on track to meet these goals or if there are significant variances that need to be addressed. This will help highlight areas requiring adjustments.

Next, examine your operational efficiency for any bottlenecks or inefficiencies within your processes. Consider conducting a SWOT analysis. A SWOT analysis provides a clear picture of your strengths, weaknesses, opportunities, and threats, which are able to guide your mid-year needs.

By thoroughly assessing these core elements, you’ll gain a comprehensive understanding of your business’s current status and make informed decisions to stay aligned with your annual objectives. Additionally, this financial information about your business is exactly what your banker will want to know when guiding your financial strategy moving forward.

 

What questions should I ask my banker at mid-year?

When meeting with your banker at mid-year, it's important to focus on gaining actionable insights to refine your financial strategy. Consider asking these key questions:

1. What financing options are available to support my growth plans? Discuss any upcoming projects or expansions and inquire about potential products or lines of credit that could support these initiatives.
2. How can I improve my cash flow management? Explore cash flow optimizations, such as better managing receivables and payables or utilizing cash management tools.
3. Are there any financial risks I should be aware of? Your banker may be able to help identify potential risks related to changes in interest rates, market conditions, and other external factors.
4. What trends are you seeing in my industry? Bankers often have insights into broader industry trends that could help you stay competitive.
5. How is my business performing compared to industry benchmarks? Asking for a comparison of your business’s performance against industry standards might reveal new areas for improvement.

By focusing on these questions, you’ll be well on your way to leveraging your banker’s expertise to make informed decisions that drive your business forward.

 

How can my banker help me adjust my business financial strategy if I'm off track?

If you find your business is off track mid-year, your banker may be able to help you realign your financial strategy. Based on your shared financial data and performance metrics, your banker will spot underlying issues and offer tailored suggestions for corrective measures. Such remedies might include restructuring existing loans to improve cash flow, exploring ways to reduce bank costs, or suggesting alternative financing options.

Be sure to work with your banker when revisiting and adjusting your budget. During your analysis of income and expenses, you’ll have an opportunity to create a revised budget that aligns with your current situation and future goals. They may also recommend financial products or services to enhance efficiency, such as treasury management services to streamline cash flow or merchant services for improved payment processing. Regular communication with your bank ensures they are up to date with your business challenges and provide timely advice, and making use of their expertise allows you to adjust your financial strategy effectively.

 

What value does my banker bring to my business year-round?

Your banker plays a vital role in your business’s ongoing success. Throughout the year, you should expect your banker to provide proactive insights on financial products, market trends, and economic factors that could impact your operations. Business bankers are able to customize financial solutions as your business evolves, ensuring that your banking services are always aligned with your current needs.

When your organization is navigating changes, such as mergers, acquisitions, or leadership changes, your banker is able to help you explore potential financial strategies and offer guidance to support your goals. 
Additionally, they have an extensive network to connect you with other helpful professionals like accountants, attorneys, or consultants who provide specialized expertise.

Expect regular check-ins from your banker to discuss your business's financial health and ensure your goals remain on track. By maintaining open communication and collaboration, your business banker should continually contribute to your business's success, helping you navigate financial challenges and capitalize on new opportunities as they arise.

Learn more about Business Banking with Merchants Bank or contact a Commercial Banker to schedule a mid-year review. Subject to approval.

The content provided on this blog is for informational purposes only and is not intended as business, financial, or banking advice. While we aim to share helpful insights related to business banking, the information shared reflects general knowledge and personal perspectives and may not apply to your specific circumstances. Before making any banking or financial decisions for your business, consult with a qualified business banker, accountant, or financial advisor.