It’s hard to believe, but this week marks the midpoint of 2020. Whether the first half of your year was good, bad, or somewhere in between, now is a great time to take a close look at your company’s financial health and assess where you want to be by the close of 2020. In this week’s Great Idea, I share two metrics to help you:
Pay close attention to your earned revenue (the revenue generated by work you’ve already completed), and your unearned revenue (the revenue you will generate when you complete sold work for the rest of 2020).
If your earned revenue for the first half of the year was lower than expected, and/or your unearned revenue for the rest of 2020 isn’t where you want it to be, it’s time to focus on closing sales and lining up work through the end of the year. If you don’t have enough sales leads, last week’s Great Idea includes tips on generating more revenue from existing clients. Be careful about any gaps in your schedule for the remainder of 2020. It’s critical to match your sales to your labor capacity.
If your unearned revenue is ahead of your forecasts for the rest of the year, it’s time to focus on operations and execution. Ensure you have enough team members to complete the budgeted hours of work, and equip your team with the tools and training they need to complete the work within the time you budgeted.
Have a great week and, as always, if we can help you in any way at The Grow Group, drop us a line at grow@growgroupinc.com.
Vince Torchia
Vice President
The Grow Group