Why You Should do a Quarterly Financial Check-in
IT'S TIME: The Quarterly Financial Check-in
Is it just me, or is this year already FLYING by?
The past two months have been hectic for me with a move — and designing the new house that goes along with that — not to mention launching my course again.
And now — bam! Suddenly, it’s March and the plants outside are looking greener and less drab. Spring will be here before you know it!
But that also means there’s a deadline looming: The end of the first quarter.
You know what you need to do. It’s time for a quarterly financial check in on your business. I know it sounds like a pain, but trust me, doing these every three months is the way to go.
Here’s what you need to do and why:
Take account of where your business is right now
If you’ve followed my advice (you have, right?!), then you did a year-end review of your business, including setting goals for the year ahead.
But that doesn’t mean things haven’t changed in just the past few months.
You could be experiencing a lower volume of clients — or better yet, a higher volume. You could have taken on a really big project that you never could have predicted would come your way when you wrote up your annual review in December.
Take account of all this.
And add up where you are so far this year in terms of your business revenue. Compare it to previous years. If you’re seeing a dip, consider: Are you spending enough on marketing? Have you let social media slide? Or is a seasonal dip right after the new year normal (and something you, therefore, plan for) every year … but if it is, then a comparison to previous years should also show that and calm any panic.
Don’t forget to think about your staff (you should also thank them all. the. time).
Is there another position you should consider adding to your business in the next year? This is the time to start strategizing for that, not when you’re in the middle of a massive project and your staff is stretched thin.
One last thing: I know it’s tax season right now for LAST YEAR, and the last thing you want to be thinking about is even more taxes. But paying quarterly taxes to the IRS will save you a big headache — not to mention a lot of money — in the long run.
Re-evaluate your goals for the rest of 2020
Now that you know where you are, spend some time thinking about where you’re going and where you want to be 9 months from now.
This can be both in terms of $$$ as well as experience. If you’ve tried a new investment, make sure that you’re looking each quarter at whether that is paying off, though keeping in mind investments often take longer than a few months to show returns.
Outside of money, consider what really drives you. What are your favorite tasks that are part of your interior design business and are you doing them enough? What provides inspiration? Can you add in more elements that not only give you an absolute joy but also help you grow?
Business changes quickly. And these little check-ins every few months will be invaluable when it comes to the return on investment you will receive in the long run. Trust me.
And if you haven’t done your annual review yet (look, I get it, it’s been a busy few months for me too), then now is the time to do that PLUS look specifically at the first three months of this year.