Wow, can you believe that 2015 is half over already?Â Now that weâ€™ve crossed the halfway mark, itâ€™s time to see if weâ€™re on track for our 2015 goals.Â To do that, we need to see if weâ€™ve met our mid-year milestones.
Managing By Milestones
A milestone, in project management terms, is simply a point along a project timeline.Â Itâ€™s marked so that project managers recognize when that portion of the project has been completed.Â We can use milestones to see how weâ€™re faring toward financial goals as well.
Assuming our business is not seasonal, we should have earned half of our target revenues for 2015 as of the June 30, 2015 income statement.Â If weâ€™re falling short, we can recognize that and perhaps add some promotions or sales to spike revenues so that we can correct the shortfall before the year has ended.Â If weâ€™re ahead of the game, we can see what is working so well and make sure to replicate it.
Either way, with milestones, we can be more proactive in reaching or surpassing our goals.
By the Numbers
Some of the numbers you may want to set milestones for include:
- Revenue to date
- Profit to date
- Debt paid down or debt taken on
- Assets acquired or sold
- Number of employees added or lost or both
- Number of clients added or lost or both
- Accounts receivable aging
Milestones donâ€™t have to be numeric.Â You can also use them to determine if youâ€™re on track with internal projects.Â Perhaps for 2015, your goal was to replace 5 PCs and convert your shopping cart software.Â Â You can set milestones to monitor specific phases of these projects or just monitor when you start and complete them.
Mid-Year Milestone Report
Document your accomplishments in a mid-year milestones report.Â It feels good to write them down, plus youâ€™ll have a history of how much you accomplished as well as what worked.
The report can include the milestones as well as a narrative explaining the performance to date.Â If youâ€™d like our help creating this report, please feel free to contact us.
Accounting for milestones can help you become more proactive toward reaching your business goals.Â Plus, itâ€™s great to see how far youâ€™ve come since the beginning of the year.