The first quarter of the year can either be the driving force behind your business’s success or lead to a slow downfall over the rest of the year. It’s vital to assess progress in Q1 to see how your company can improve weak spots and continue successful tactics in the next quarter.

Reflecting on Q1

When the New Year arrives, businesses typically set ambitious goals, some of which may be quarterly objectives or yearlong initiatives. Even though it may feel like there is so much time ahead of you, boom! It’s April and the first three months of the year have passed. Reflecting on what your company did and didn’t accomplish during this time is crucial for moving forward.

Review What Worked

Set aside time in April to review the company goals you set in January. Looking at the right key performance indicators (KPIs) can give you valuable insight into whether these goals were met. Although the exact KPIs to focus on will vary depending on your business model, some critical financial metrics you should keep an eye on are sales revenue, gross and profit margins, overhead costs, and monthly profits or losses.

For every goal you set, you should have a metric that tells you whether you and your staff are making progress toward that objective. Once you’ve identified your KPIs, evaluate the goals you set and determine which ones have been reached in Q1. (Spoiler alert: It may be time to grow any goals that were met too easily.)

A detailed review of January through March, and where success was achieved, also provides a roadmap for the coming quarter. Where should you invest your time and energy? Some proactive strategies for the next quarter could be:

-Plan for shortages

-Monitor cash flow

-Invest in your employees (because employees make or break your business!)

Review Improvement Areas

Most small businesses start the year excited about the coming 12 months and anxious to embark on challenging goals. But what happens when those challenging goals were actually a challenge?

First, remember you are not alone. It’s entirely possible you might not meet every single WIG (wildly important goal) you set for Q1. Don’t let that discourage you or keep you from taking a realistic look at ways to improve your business in the next quarter.

Second, identify the Q1 goals that were not reached based on your KPIs. Then, determine why your company didn’t meet them. For example, maybe the goals were unrealistically high, the implementation plans weren’t communicated clearly, or an unexpected incident caused a loss of business. Whatever the reason for not reaching the goals, you’ve looked it square in the face, you’re aware of the issue, and now you’re empowered with the data necessary to develop a go-forward plan. Be as specific as possible with your revised goal and include actionable steps to support the goal.

For example, “increase revenue by 10%” is a great goal IF accompanied by actionable tips such as make two cold-calls per day, check in with 10 current clients per week, and attend two business development events per month. Track these steps, conversations had, and the results of these interactions. If you see 10% revenue increase, continue with these efforts. If not, reevaluate frequency and number of outgoing effort attempts and possibly alter your strategy.

Don’t forget to make everyone aware of the updated plans. Include all of the business’s stakeholders in the journey to make Q2 better and encourage ownership across your team to make the new plan personal to everyone.

Recharge for Q2

If you’re making changes to better meet your targets in Q2, join the club. You are not the only business in town looking to consistently meet and exceed your goals. It’s why you got into business in the first place, right?

Your accountant is a crucial component of the quarterly review process. At Specialized Accounting Services, we believe a stable, accurate set of books is the foundation for any successful business. From budgeting and forecasting to tax reporting and customized management reports, our team’s support can help you right the ship, if needed, and provide an infusion of accounting support designed to make your goal-setting efforts worthwhile.

Complete the from on our website to learn more about us and schedule a no-obligation conversation with our team.