I know some of you are sweating bullets right now. The end of Q1 is near. Your revenue and marketing objectives may be in jeopardy. Here’s why the first fiscal quarter for a lot of companies is painful.
If Q1 is tough you’re probably feeling the impact of a 9-month year. The problem is you put the hurt on yourself. Yep, you caused the panic in Q1 if:
- The 2010 sales and marketing plan/budget wasn’t approved by October 2009
- Marketing and sales funds for 2010 programs weren’t made available until January
- Sales and marketing were completely consumed in Q4 on moving buyers through the last few stages of the funnel
- Sales and marketing don’t know what the lag time is for each stage of their revenue funnel.
Any one of these things will throw a big wrench into the revenue-generation gears for Q1. Instead of moving the necessary volume of buyers through the funnel during the first quarter, many of you were just getting plans approved and starting to execute. No way can you impact Q1 revenue if the length of your average sales cycle is 8 weeks or more and campaigns are launched in late January or so.
Getting out of the blocks quickly with your sales and marketing programs is only a part of the solution. The real focus has to be on maintaining rhythmic continuity of sales and marketing tactics through Q4 so each stage of the funnel has the right number of buyers necessary to achieve the Q1 revenue target. (If you don’t know how many buyers are needed at each stage you have an even bigger obstacle to revenue growth).
If it’ll take the Board until late November or December to approve the operating budget ask for a reasonable baseline budget well in advance so you can commit to January-February programs.
Don’t let yourself be trapped trying to achieve a 12-month revenue number with only 9 months of runway.