Comments on: Praying for a Hockey Stick http://www.2-speed.com/2006/11/praying-for-a-hockey-stick/ Entrepreneurial Leadership and Management . . . and Other Stuff Wed, 28 Jul 2010 04:28:24 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: John Wall http://www.2-speed.com/2006/11/praying-for-a-hockey-stick/#comment-55 John Wall Wed, 29 Nov 2006 01:39:48 +0000 http://www.2-speed.com/2006/11/praying-for-a-hockey-stick/#comment-55 Thanks Will, that's interesting. That would be nice if a summer shutdown evolved so that there were 3 silent weeks and 9 normal ones rather than 12 slow weeks in the summer. <BR><BR>I hadn't thought about having to go back and do past audits, that would be a nightmare, especially if you've had multiple rounds of funding or any changes of staff in the accounting department... Thanks Will, that’s interesting. That would be nice if a summer shutdown evolved so that there were 3 silent weeks and 9 normal ones rather than 12 slow weeks in the summer.

I hadn’t thought about having to go back and do past audits, that would be a nightmare, especially if you’ve had multiple rounds of funding or any changes of staff in the accounting department…

]]> By: Will http://www.2-speed.com/2006/11/praying-for-a-hockey-stick/#comment-56 Will Tue, 28 Nov 2006 03:06:35 +0000 http://www.2-speed.com/2006/11/praying-for-a-hockey-stick/#comment-56 Hey John, great questions! <BR><BR>I've seen that many companies across industries are seeing lower Q3 numbers.  When you're lucky, that results in bookings or revenue shifts from Q3 to Q2 and not a loss of bookings or revenue all together.  It used to be that Europe went dead during Q3, Japan picked up a bit and the US remained a little flat with respect to Q2.  More recently, I've seen a global depression during Q3.  Perhaps all economies are shifting to vacation-mode during the third calendar quarter.  So, I don't think what you're seeing is an exception - this is happening in many markets. <BR><BR>You're right about changing the fiscal year.  It's just complex and difficult.  Audits have to be redone for historical years.  If you have substantial bookings or revenues, it obviously gets even more difficult.  It also stirs up all kinds of problems with revenue recognition and with with licenses granted to customers that might become unaligned with the fiscal year.   <BR><BR>If you're early on in your venture, however, and you think it can help you in ways the post talks about, it may be worth the pain.  It's certainly worth considering if you're just creating a new enterprise, of course. <BR><BR>Hope that helps . . . Will Hey John, great questions!

I’ve seen that many companies across industries are seeing lower Q3 numbers.  When you’re lucky, that results in bookings or revenue shifts from Q3 to Q2 and not a loss of bookings or revenue all together.  It used to be that Europe went dead during Q3, Japan picked up a bit and the US remained a little flat with respect to Q2.  More recently, I’ve seen a global depression during Q3.  Perhaps all economies are shifting to vacation-mode during the third calendar quarter.  So, I don’t think what you’re seeing is an exception – this is happening in many markets.

You’re right about changing the fiscal year.  It’s just complex and difficult.  Audits have to be redone for historical years.  If you have substantial bookings or revenues, it obviously gets even more difficult.  It also stirs up all kinds of problems with revenue recognition and with with licenses granted to customers that might become unaligned with the fiscal year.  

If you’re early on in your venture, however, and you think it can help you in ways the post talks about, it may be worth the pain.  It’s certainly worth considering if you’re just creating a new enterprise, of course.

Hope that helps . . . Will

]]> By: John Wall http://www.2-speed.com/2006/11/praying-for-a-hockey-stick/#comment-59 John Wall Tue, 28 Nov 2006 02:28:14 +0000 http://www.2-speed.com/2006/11/praying-for-a-hockey-stick/#comment-59 I had 2 questions - I've been at companies where the annual curve had a better Q2 than Q3 (customers want to wrap up business before the summer vacation), is that an exception to the norm? The other was on moving the fiscal year - this does seem to be a great way to get around purchasing departments that let everything sit until the last week of the quarter, why don't more companies do this? Is it just such a monumental effort in accounting to switch the calendar? I had 2 questions – I’ve been at companies where the annual curve had a better Q2 than Q3 (customers want to wrap up business before the summer vacation), is that an exception to the norm? The other was on moving the fiscal year – this does seem to be a great way to get around purchasing departments that let everything sit until the last week of the quarter, why don’t more companies do this? Is it just such a monumental effort in accounting to switch the calendar?

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