As the midpoint of the year approaches, it may be tempting for small business owners to shift into cruise control mode, especially if their business has been performing well or at least holding steady up to this point. Staying steady isn’t the same as growing.
For many business owners, the mid-year mark provides them with an opportunity to look at where things stand, what’s holding them back and what needs to shift before the next big wave of opportunity arrives.
Here are some tips on how small business owners can reignite goals that were set at the beginning of the year and help prepare for a strong second half of the year.
Revisit the Goals Set at the Start of the Year
Back in January, plans for the business were most likely made, such as expanding to new locations, adding a service line, growing the team, or upgrading tools and systems. But between client demands, economic changes, slow cash flow, or just daily distractions, some of those goals may have been pushed to the back burner.
But now is the time for business owners to revisit those goals and ask:
Are these still the right goals for the business?
Has any progress been made or is the business just treading water?
What resources would help the business move faster or more effectively?
If there has not been any traction gained on the identified goals,, that’s not a failure. But it is a sign that something, whether it’s time, bandwidth, or lack of available working capital, is blocking momentum.
Look Ahead to the’ Industry’s Natural Highs and Lows
Every business has its rhythm. Maybe the company’s busiest months are just around the corner. Maybe the summer is slow, but Q3 tends to explode with opportunity.
Either way, it is imperative that business owners do not wait until they are in the thick of it to start preparing.
Think of the landscaper who lands a contract in June but doesn’t have the upfront cash to cover equipment and staffing—so they pass on the opportunity. Or the retail store owner who wants to ramp up inventory for back-to-school season but won’t see a return until August.
Accessing additional working capital now—before the pressure hits-can make all the difference between reacting to demand and being ready for it.
Find the Gaps That Are Holding the Business Back
Sometimes, growth isn’t about doing more. It’s about removing friction.
Business owners should ask:
Are the operational systems built to handle a busy season?
Are staff members stretched too thin to take on more?
Are we turning down work because the business can’t afford the upfront cost to complete the project?
Is the business in need of refreshing marketing efforts to keep leads coming in?
Consider the small auto repair shop owner that may need to invest in a second lift to double capacity. Or the local food truck operator who might see a string of summer festivals approaching but doesn’t have the cash to pre-pay vendor fees. Being able to finance the second lift or covering the upfront vendor fees may seem like wish-list problems but in reality, they are actually growth problems and it is up to the business owner to figure out how to generate the funds needed to help grow the business. Short-term working capital can be the bridge between where the business is and where it needs to be.
Play Offense, Not Defense
When business is slow, it’s easy to go into wait and see mode, whether that be waiting for better sales, waiting for the season to pick up or waiting for everything to feel a little more certain.
But most successful small businesses do not have time to wait and the businesses that grow and keep growing year over year move with intention, while making strategic moves to help facilitate that growth.
Take for example the small manufacturing company that realized in January they were going to be short on staff by the time their spring orders came in. Rather than scramble later, they secured additional working capital to begin hiring and training immediately. By April, they were operating at full strength and took on a higher order volume than the previous year.
That move wasn’t reactive. It was strategic. And it paid off.
Make Working Capital Part of the Conversation
Not every opportunity requires a significant amount of funds. But many of them become easier or faster to act on with the right resources available.
Think of working capital as a tool in your toolbox, not a last resort. It’s not about taking on unnecessary cost. It’s about using the right solution, at the right time, to help stay on track with realizing the business’ bigger vision.
What Could Be Accomplished by Year-End?
Six months from now, where do you as the business owner want to be? Are you looking to close out the year with higher revenue, secure new clients, or implement stronger systems? Are you trying to get ahead before tax season hits again? Or are you simply trying to break out of the cycle of barely keeping up?
If you’re already thinking of your next move, don’t wait for the opportunity to pass by. Start now. Use this mid-year checkpoint to reassess, reposition, and realign, while providing the business with the resources needed to follow through.
Penhurst Capital works with business owners every day who use this time to recalibrate and refocus. And the ones who get the most out of the second half of the year are the ones who move now—not later. Penhurst specializes in helping business owners find the short-term financing options that align with their timing, needs, and goals. The second half of the year is full of potential. Make sure your business is ready.
