SEVEN STEPS TO REFRESH YOUR QUARTERLY FORECAST.
Hey Founder,
Can you believe Q2 has sprung? I don't know where Q1 went. Time sure flies when you're having fun and hustling hard. But with the start of a new quarter comes the perfect opportunity to hit the reset button on your finances and ensure you're on track to meet your goals for the rest of the year.
So, grab your favourite beverage and let's chat about how to give your finances a spring clean that would make even Marie Kondo proud.
COMPARE YOUR ACTUALS TO PLAN
Alright, first things first – let's take a look at the numbers. How did your actual performance stack up against your plan for Q1? Did you exceed expectations, or did you fall a bit short? No need to panic if things didn't go exactly as planned; this is all part of the process.
ASSESS YOUR TOP SELLERS
Now, let's dive into the nitty-gritty. Take a close look at which products or services were your top sellers during the first quarter. Are these trends seasonal, or do they indicate a long-term trajectory? Understanding your sales patterns can help you make informed decisions moving forward.
REVIEW YOUR ACCOUNTS RECEIVABLE
Next up, it's time to chase those dollars. Take a moment to review your accounts receivable and follow up on any outstanding payments. After all, your hard work deserves to be compensated promptly.
DIAL IN ON YOUR DIRECT COSTS
Check in on your direct costs, have any of your material costs increased? What about freight and shipping have they remained flat? If your costs have gone up this is the time to tweak your prices. Small adjustments go over better than major jumps. Just remember to communicate any changes effectively with your clients – transparency is key. And not all prices need to be permanent. Remember back when temporary surcharges were implemented to address skyrocketing fuel costs?
CHECK IN ON YOUR SOFTWARE SUBSCRIPTIONS
Subscription services are a godsend, but they can also sneakily eat away at your profits if you're not careful. Take a moment to review all your subscriptions and cancel any that are no longer serving you, or downgrade if all the bells and whistles aren't being used.
MEASURE YOUR KPIs
Ah, the heartbeat of your business – key performance indicators (KPIs). These metrics are like your financial compass, guiding you toward success. Take some time to measure and analyze your KPIs to gain insights into your business's health and progress. Here are a few examples of KPIs to consider:
Productivity: Measure employee productivity levels to ensure your team is operating efficiently and effectively.
Marketing Effectiveness: Track KPIs such as customer acquisition cost (CAC), conversion rates, and return on investment (ROI) to evaluate the effectiveness of your marketing efforts.
Sales Performance: Monitor metrics like sales growth, customer acquisition rates, and average deal size to assess the performance of your sales team and strategies.
By regularly measuring your KPIs, you'll gain valuable insights into what's working well and where improvements can be made, helping you make more informed decisions to drive your business forward.
ADJUST YOUR ANNUAL FORECAST
And now, for the big finish – the moment when you chart your course for financial success over the next three quarters. Do you need to boost sales, adjust pricing, or cut back on expenses? This isn't just routine – it's a crucial step that could redefine your business's future. And don't forget to update your plan in your trusty bookkeeping software. It's not just about numbers; it's about mapping out your financial future.
THE BOTTOM LINE IS THIS...
With these seven steps in your financial spring cleaning arsenal, you're ready to take on Q2 like a pro. Remember, a little bit of proactive financial management can go a long way in setting you up for success in the months ahead. So, roll up your sleeves, dive into those numbers, and watch your business thrive. Here's to wrapping the year financially fierce.
BTW, this is what we do best, help Founders like you nail their numbers. We're an email away [helpdesk@nailthenumbers.com] if you ever need help or want to talk about your financial situation.
Until next time, stay focused, fearless and financially fierce!
Taunya.
ABOUT TAUNYA WOODS RICHARDSON
Taunya is well-known for her straight-shooting, bottom-line-building approach to founder finance. As the Founder of Nail The Numbers, she brings 30+ years of experience in entrepreneurship, finance, and neuroeconomics to our mission of strengthening the minds and bottom lines of Founders across North America.
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