Monitoring your business cash flows on a regular basis is very crucial especially when we hit tough economic times. Pro-active monitoring of business cash flows on a monthly, fortnightly or weekly basis can prevent Business Owners from going into bankruptcy and having to sell their precious businesses for a pittance (Distressed Businesses). Solve the Problem before it starts! Combining a cash flow management tool with a Break Even Analysis gives you a good insight into setting your target production and sales targets for the period. The Break Even units/projects are the number of units or projects to sell or complete and bill at a minimum to cover your running fixed costs. This can be converted into Break Even Revenue as well. This analysis also helps to frame your business target cost structure. Most of all, you can plan to build in a fat margin of safety to absorb any unexpected events that may come along and affect your business down the line.
Please download our Cashflow management spreadsheet to get a feel for how this might work for you and email us at samuel@samuelsonz.onmicrosoft.com to arrange a confidential discussion on how we can help you.