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  • Writer's pictureCherie Larson

Business Planning for the Second Half of the Year

Congratulations - your business is over halfway through 2021! We all wondered last year if we’d even make it to this point and what things would look like given the widespread uncertainty and unknown business landscape.

For the business owner, there is always risk and uncertainty. Calculating and mitigating those risks (along with a little bit of luck!) can lead to success where others fail. A part of knowing where to go next is looking at where you are now and what it would take to get you where you want to go.

There are many growth factors for a business, but your financial statements are the primary foundation for assessing the past and future. Here are some things to ask yourself as you move into the second half of this year.

Sales & Expenses (P&L)

  • How do these compare to 2020 and 2019?

  • How did sales change? What caused this change? What parts of my business did better? Did any do worse? What factors causing the change were under my control? What can I control going forward?

  • How have expenses changed? Are they keeping pace with sales (or ideally, increasing less than sales)? What am I spending money on that I don’t need to? Am I paying for anything not being used? How can I grow without increasing my expenses – or where do my expenses need to increase to increase sales?

Cash & Receivables

  • How has my cash changed over time?

  • Do I have enough cash to fund my future obligations like taxes, draws, loans and taxes? If not, do I have a plan to fund these?

  • How current are my receivables? How can I get overdue invoices collected and keep current invoices from becoming overdue?

  • Do I have savings for the future unknown and/or growth?


  • How much inventory do I have?

  • Is my inventory turning over on a regular basis?

  • What do I have that I need to get rid of?

  • Can I better manage my inventory?

Fixed Assets

  • What did I already purchase this year? Are there items I can dispose of by selling?

  • What will I need to purchase this year? Can it be postponed? How will I pay for it?

Accounts Payable, Credit Cards & Loans

  • Am I making regular payments and paying down my debt? Are credit cards being paid in full each month? If not, this is often a sign of overspending on things you can’t afford.

  • When will I pay off loans? Will I need to borrow more to fund future growth? Loans should not be used long-term to meet operating expenses. How can I avoid borrowing more money?

Owner Equity

  • Have I been taking a lot of money out of my business? If so, can my business afford for me to take this cash?

  • Have I been putting money into my business? While sometimes necessary, this should not be necessary on a regular basis. Your business needs to fund itself for general operations.

Once you’ve looked at all of this, it’s time to plan for the rest of the year. Look at where you’re going to spend your money...and where the money coming in will come from. What changes need to be made in marketing, personnel, sales, etc.? Take some time to plan and be intentional about the second half of 2021. You’ll thank yourself for it later!

All of this analysis can’t take place unless your books are in order. If you need help with your books and/or setting up a cash flow plan, reach out to see how we can help.


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