PROFIT & LOSS ANALYSIS
PROFIT & LOSS ANALYSIS
All of a sudden you’re tight in money!
Here’s a typical story which we have heard numerous times.
“Business was booming the last six years. Sales were growing, we hired more staff, we shipped tons of stuff, and we even started an online store which is very successful. We were making money, everything looked beautiful”.
“The last six months things slowed down a little. Not terrible, just a little slower than before. It happens in every business, you know. But lately things have gotten very tight. I don’t have enough money to cover payroll, bills have started piling up, a few checks have bounced. I thought money will come in and I will be able to cover before the checks bounce, but money didn’t come in”.
“Suddenly I don’t know what’s going on. I didn’t do anything different than I have done the past six years that I have been in business!”.
“This is really scary!”
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It sure is scary. And it didn’t happen suddenly!
Most small businesses don’t do a monthly checkup of their business. If one does a monthly analysis of all aspects of the business, one would see that in the last month sales fell by 10 percent. The next month it fell by another 3 percent and action was needed immediately.
Some of the following questions would have come up:
• Why did sales fall
• Did we have any losses
• Are we over staffed
• Are our prices right
• Are we monitoring the competition
• Is our overhead to high
• Are we marketing to the proper channels
If you don’t monitor your business monthly, you might get caught by a “Suddenly” surprise.
If you are in a position where money has become tight, you will save yourself a lot of time and aggravation by bringing in an outside professional to do a thorough examination of all the aspects of your business. We will then provide with clear direction how to move forward.
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Don’t think like a small businessman that this will cost you money (that you don’t have right now), it will not only save you money, but might even save your business from being slowly destroyed.
We have the expertise and knowledge to do a proper analysis and provide you with a map of how to get out of your present situation and guide you how to move forward to success.
If things are tight and getting tighter, don’t wait.