Foundry Group managing director Brad Feld explains in a blog post yesterday that founders should be able to tell if they’ll hit their Q1 goals by the first week in March — and they better reevaluate their plans fast if they are off-track.
“Q1 is the easiest quarter to make since you just created the annual plan. If you miss Q1, especially in a recurring revenue, services oriented business, or adtech business, there is almost no way you will make it up over Q2 – Q4,” writes Feld.
For those who think they might be off-target, Feld suggests a deep-drill, root-cause analysis of why you will miss Q1 goals. Feld also emphasizes an immediate halt to discretionary spending, while continuing to focus on all other aspects of the execution plan. Finally, managers must re-forecast Q1 and the rest of the year based on the analysis, and “call a board meeting around April 15.”
If you are currently beating Q1 expectations, then Feld is bullish — “Start thinking about how you can accelerate and grow even faster!”