As in the old joke, when a hare trad hundr rubles for fifty, and to the question “how are you?”, he answer: “I didn’t count the profit, but the turnover is crazy!” it hurts to realize that a business has been unprofitable for several months, but this is reveal when a chronic problem turns into an acute stage of lack of money. And then the owner catches on, but marketing will no longer help. I have come across a situation more than once when they seek advice on the issue of sales growth, and a simple financial analysis shows that the best solution is to fix losses and quit this business while there is still something left.
Almost no difference between cost
With large volumes of sales, profits are Italy Email List eaten up by discounts, there is no difference between profitable products and unprofitable ones. Profitable directions cover unprofitable ones. Resources are invest not in the development of profitable ones, but in support of unprofitable ones. It’s impossible to tell without numbers. 5. Mistakes in overhead management lack of understanding of the difference between mandatory fix costs and manageable costs, such as: training yourself and staff, marketing and promotion costs, business optimization costs and building systems in business. Traditional financiers consider all this as expenses and try to cut it down, while it is necessary to cut unprofitable unnecessary expenses.
Which should be evaluat by the return
Now and in the near future. And many experience Doctors Email List an unmotivat fear. Seeing the unsightly truth, so they refuse to count the real figures of income and expenses. What do I suggest to decide where and how you go next, first determine where you are now. The task, oddly enough, is quite difficult. A questionnaire will help you , which will help you understand where and what you miss. Choose the tools that are right for you. Finance is not rocket science. and although often the topic of accounting for finances in a small business seems complicat and boring to entrepreneurs, it is possible to understand and put finances and resources under control faster, easier and cheaper than it seems.