Quarterly Business Review: A Step-by-Step Guide

Every quarter, your business deserves a check-up. Not just a glance at the bank balance, but a thorough review of what’s working, what’s not, and what needs to change.

A quarterly business review (QBR) gives you structured time to step back from daily operations and see the bigger picture. Done well, it helps you catch problems early, capitalize on opportunities, and stay aligned with your goals.

Here’s how to conduct an effective quarterly review.

Why Quarterly Reviews Matter

Not Too Frequent, Not Too Rare

• Weekly/monthly: Good for operations, but too short for strategic patterns
• Annually: Too infrequent to catch issues in time
• Quarterly: Right balance of strategic perspective and actionable timeframe

What Quarterly Reviews Accomplish

• Validate or adjust your strategy
• Identify trends before they become crises
• Celebrate wins and learn from losses
• Set priorities for the next quarter
• Keep you accountable to goals

Preparing for Your Review

Gather the Data

Before your review, collect:

Financial reports:

• Profit and Loss (quarter and year-to-date)
• Balance Sheet
• Cash Flow Statement
• Budget vs. Actual comparison

Operational metrics:

• Sales data (by product, customer, channel)
• Customer counts and retention
• Employee productivity metrics
• Project completion/profitability

Industry context:

• Competitor developments
• Market trends
• Economic factors affecting your business

Schedule the Time

Block 2-4 hours of uninterrupted time:

• Away from daily operations
• No phone interruptions
• Fresh mind (not end of exhausting day)

If you have a team, include key people. If solo, consider involving a mentor, advisor, or peer.

The Quarterly Review Process

Part 1: Financial Review (45-60 minutes)

Revenue Analysis

Questions to answer:

• Did we hit our revenue target?
• What’s the trend vs. prior quarters and prior year?
• Which products/services grew or declined?
• Which customers drove growth?

Red flags:

• Revenue declining without explanation
• Over-concentration in few customers
• Best products/services declining

Actions: Note insights and questions to investigate

Profitability Analysis

Questions to answer:

• Did we hit our profit target?
• Is gross margin stable, improving, or declining?
• Are operating expenses in line with budget?
• What’s driving any profit variance?

Red flags:

• Margins compressing
• Expenses growing faster than revenue
• Profit declining despite revenue growth

Actions: Identify specific costs to investigate

Cash Flow Analysis

Questions to answer:

• Is operating cash flow positive?
• How does cash flow compare to profit?
• Is cash position improving or declining?
• Any concerning patterns in receivables or payables?

Red flags:

• Negative operating cash flow
• Cash declining despite profitability
• Receivables aging poorly

Actions: Identify cash flow priorities

Balance Sheet Review

Questions to answer:

• Is our liquidity position adequate?
• How is debt trending?
• Is equity growing?

Red flags:

• Declining liquidity ratios
• Growing debt without corresponding asset growth
• Negative or declining equity

Part 2: Operational Review (30-45 minutes)

Customer Analysis

Questions to answer:

• How many customers did we gain/lose?
• What’s our retention rate?
• Who are our best customers (by profitability)?
• What feedback have we received?

Actions: Note patterns, at-risk customers, opportunities

Product/Service Analysis

Questions to answer:

• Which offerings are most profitable?
• Which are growing or declining?
• Are there offerings we should discontinue?
• What should we develop or add?

Actions: Identify focus areas for next quarter

Team Analysis

Questions to answer:

• Do we have the right people?
• Is productivity where it should be?
• What training or support is needed?
• Any personnel changes needed?

Actions: Note hiring, training, or restructuring needs

Process Analysis

Questions to answer:

• What’s working well?
• What’s causing friction or waste?
• What should we automate or systematize?
• What bottlenecks exist?

Actions: Identify process improvements

Part 3: Goal Review (30-45 minutes)

Review Last Quarter’s Goals

For each goal you set last quarter:

• Did you achieve it?
• If yes, what enabled success?
• If no, what prevented achievement?
• Is the goal still relevant?

Be honest. Unmet goals aren’t failures if you learn from them.

Review Annual Goals

• Are you on track for your annual goals?
• Do annual goals need adjustment?
• What must happen in the next two quarters to hit annual targets?

Identify Next Quarter’s Priorities

Based on your review:

• What are the 3-5 most important things for next quarter?
• What will you start, stop, or continue?
• What’s most urgent vs. most important?

Part 4: Action Planning (30-45 minutes)

Convert Insights to Actions

For each key insight from your review:

• What specific action is needed?
• Who is responsible?
• By when should it be complete?
• How will you know it’s done?

Set Quarterly Goals

Choose 3-5 goals for next quarter:

• Specific and measurable
• Achievable in one quarter
• Aligned with annual goals
• Balanced across financial, operational, and strategic

Identify Resources Needed

What do you need to achieve next quarter’s goals?

• Budget allocation
• People or skills
• Tools or technology
• External help (advisors, contractors)

The Quarterly Review Template

Q__ 20__ Business Review

Financial Summary

Metric	Target	Actual	Variance
Revenue	$	$	%
Gross Profit	$	$	%
Net Profit	$	$	%
Operating Cash Flow	$	$
Ending Cash	$	$

Key Financial Insights: 1. 2. 3.

Operational Summary

Metric	Target	Actual
New Customers
Lost Customers
Units Sold
Employee Count

Key Operational Insights: 1. 2. 3.

Last Quarter Goal Review

Goal	Status	Notes
1.	Met/Not Met
2.	Met/Not Met
3.	Met/Not Met

Next Quarter Goals

1. Goal:

   • Measure:
   • Target:
   • Owner:

2. Goal:

   • Measure:
   • Target:
   • Owner:

3. Goal:

   • Measure:
   • Target:
   • Owner:

Action Items

Action	Owner	Due Date
1.
2.
3.

Making Reviews Effective

Be Honest

The review is worthless if you’re not honest about problems. This isn’t for external audiences—it’s for you to understand reality.

Focus on Action

Insights without action are just interesting. Every significant finding should generate a specific next step.

Compare to Prior Periods

Numbers in isolation mean little. Compare to:

• Last quarter
• Same quarter last year
• Your targets

Don’t Overthink

A completed review with 80% of the ideal data is better than a perfect review that never happens. Start where you are.

Build the Habit

Schedule your next quarterly review before finishing this one. Make it non-negotiable.

After the Review

Communicate Key Points

If you have a team, share:

• Overall performance summary
• Key wins to celebrate
• Areas needing improvement
• Next quarter’s priorities

Track Progress Monthly

Between quarterly reviews:

• Monthly check-in on quarterly goals
• Adjust tactics as needed
• Don’t wait 3 months to course-correct

Document for Future Reference

Save your review documents. They become valuable:

• Historical record of performance
• Pattern identification over time
• Accountability for commitments

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Want help with your quarterly review? At Profit Path Books, we help small business owners understand their numbers and conduct meaningful business reviews. Book a consultation to discuss how we can help.