Last Quarter. Finish Strong.

“Last quarter.” The game is ending. The score is close. This is the time that matters. But, the term “last quarter” isn’t just important in basketball and football. It is also super important in the professional field.

The Background.

Let’s break it down. Many companies, especially corporations, measure their year in quarters. Companies refer to their business year as a “fiscal year.” A fiscal year is simply a 12-month period used by companies and governments for budget and financial reporting purposes. The 12-month period is then broken down into 4 three-month quarters, typically: January – March, April – June, July – September, and October – December. However, some businesses do follow a different year structure.

Each quarter in the professional world is important. Businesses use quarters for different reasons such as: to set goals, complete financial reporting, and/or review business performance. On a larger scale, quarters are crucial for publicly traded companies because quarterly financial reports can affect stock prices and serve as an indicator regarding the health of the company. The gathering and review of quarterly information is usually completed during “month end,” which is typically the first 5 days (1^st – 5^th) of each month.

The Connection.

So, why should the term “quarter” be important to you? Well because I’m sure you want to grow your business and grow in your professional life. Analyzing your business quarterly help you identify issues and implement corrections, while understanding what the term means helps you grow professionally.

Business Growth

Quarterly reporting is part of a strong business foundation. Which is why many companies do it. From a business perspective, you won’t be a small business forever. One day you’ll be a large company, hopefully publicly traded. You need to start treating your business based on where it’s going, not where it is now. Here are some items that you should complete each quarter:

1. Financial Analysis. (This should also be completed at the end of each month, but we’ll start with quarters)
   • How much did you make the past three months?(your profit)
   • How much did you spend? (your expenses)
   • What was your actual revenue? (profit – expenses)
2. Goal Review.
   • Did you meet the goal you set for last quarter?
   • What are your goals for this quarter?
   • What is your budget for the next quarter?
3. Business Analysis.
   • What did you do well this past quarter?
   • What are your areas of opportunity?
   • Sometimes, you can even send out a quarterly survey to your clients & customers asking them for a review! (survey monkey is a great tool).

There’s more that you can do, but let’s start with the three steps above. I don’t want to overwhelm you, I just want you to start where you are with what you can.

Professional Growth.

Professionally, it’s important to understand terms that will be used in the rooms that you’ll be in.  Sometimes the words “fiscal year,” quarter,” or “month end” will come up in conversation. You want to be informed.

Also, vocabulary can be important when searching for new opportunities. You never know who you’ll be speaking with. There have been so many times where I was in a new position and I had to ask what a term meant. It definitely helps to do a little research on your own. But, don’t be afraid to ask someone you trust … EVER.

The Cole Perspective.

Alright, so here we are. Last quarter of 2020. This year has been … a year. The first “quarter” was great. That’s when life was open. I’ll never forget how I had the best momentum. Law school was going well, I was making professional connections, and I was actually starting to travel again. I had just come back from spring break in Atlanta and on our first day back to class the world shut DOWN. I mean online classes, travel restrictions, businesses closing, conferences cancelled, etc. The world hasn’t been the same since. Life got a lot crazier. We lost icons like Kobe Bryant, Chadwick Boseman, & Ruth Bader Ginsberg. Businesses started permanently closing their doors. There has been civil unrest and political crises. All of that and we weren’t even supposed to leave the house.

 But we can’t focus on the past, we have to live in the present. All we can do is look forward and regroup. We can’t let tragedy define us. We must set our lives up for whatever the new “normal” will be. A lot of million-dollar businesses started in the middle of crisis and recession. For example: Microsoft, Hyatt, Uber, Groupon, Airbnb.  So NOW is the time, while you have time, to pour into your business and solidify a strong foundation. It won’t be perfect from the beginning, but each small step counts.

It’s the final stretch. It’s not always about how you start, it’s how you finish. Review your year using the steps above, set some goals, and keep pushing. Finish strong. You’ve got this!