One of the great things about living in New England is the change of seasons. While we may not love each and every season and its characteristics, there’s something both comforting and energizing about the change.
For those of us in business, the four seasons provide handy clues and reminders about the challenges, opportunities, processes, and commitments we face as entrepreneurs and managers. From a functional and administrative perspective, I’m used to thinking of spring as tax season, summer as vacation season, fall as preparation for year-end, and winter as time to hunker down and minimize expenses. Of course, depending on which industries you’re in, the seasons can represent periods of time when you experience vast differences in the levels of revenue that you generate.
From strategy and marketing perspectives, fall is the perfect time of year to begin reflecting on your company’s performance thus far. By mid-October, your organization should have clean financial performance data for the first three quarters of the year. I recommend taking this information and, utilizing historical data and trend analysis, developing projections for fourth quarter performance and year-end results.
Ideally, you will then cross-reference your financial performance data with goals and objectives that have been set forth for the year, and draw conclusions and make determinations based on the review process.
Some companies have solid processes and commitments in place for reviewing a dashboard of key success factors on a periodic basis. Many solopreneurs and small businesses rarely look at financials and lack the experience, training, and time to utilize them for planning purposes.
At the very least, we should all take an organized break from the rigor of daily operations and reflect on what is working well with our businesses, and where there are opportunities for improvement. Then, we can begin by developing simple, actionable strategic and marketing plans to address these obstacles and opportunities.
Even though this is considered common sense and old news for many business people, the vast majority do not practice it regularly or effectively. Those who do take the time to reflect on their goals, competencies, and changing opportunities in the marketplace, however, are far more likely to develop sustained competitive advantage.
As the holiday season approaches, carve out some time in the near future to review your financial statements as part of your planning process. And, if you need help in this process and can benefit from the participation of experienced entrepreneurs, managers, and accountability partners, don’t hesitate to reach out to us.
