October 9, 2005

Thinking about Q5 yet?

Now that it's October, we're officially into Q4 of calendar 2005. This is an important time for companies with fiscal year ends of December 31st. This is the time executives turn to maximizing revenue and closing sales to improve financial results.

In the course of this headlong effort to attain results even the most astute business people miss the most important quarter of all...Q5.

What is Q5? Q5 is a pseudonym for Q1. Q5 is a pro-active state of mind. Q5 Thinking is the antidote to the seasonality that's artificially constructed to maximize results for the year. Seasonality is the rationale we hear most for the drop in revenue that immediately follows a company year end. Literally this is caused by jamming revenue into the forth quarter. The sales funnel and order book gets down to zero or close to zero. In my opinion the seasonality can be eliminated.

I'm not suggesting that an organization hold back revenue for the new year. Its just that in the hyper active effort to maximize revenue, no thought is given to where the revenue will come in the early part of the new year. In fact some organizations don't begin planning for the new year until 2 months into it and take 4 months to make up for the 2 months of coasting.

Imagine what could be possible if you carry the Q4 energy into Q5 (aka Q1). So, are you thinking about Q5 yet?

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