4 key areas to evaluate in your business budget
With the potential for business life to return to something resembling normal, it’s a good idea to take a look at your budget and see where you may need to shift some of your priorities. Pay attention to how your spending over the past few years affected your business and either helped you achieve, or took you away from, your overall goals. Considering how your business and your employees functioned in recent years can help you predict upcoming trends–which will enable you to plan for adjustments. Here are some key areas to evaluate in your budget, so you can determine …
How cash flow forecasts can help you
Managing cash flow is a vital part of running a successful business. Some business owners think managing cash flow simply means keeping track of how much money enters and leaves their business, but there’s actually more that goes into it. Cash flow forecasting, for example, is an incredibly valuable tool that helps you anticipate cash flow issues, plan for days when your cash flow is limited, and show the bank that you are prepared. It’s an important process that you shouldn’t ignore. Here are some ways cash flow forecasts help entrepreneurs. They help identify cash flow issues before they happen …
Do you know your break-even point?
All business owners need to be aware of their break-even point — that is, the number of units they need to sell in order to cover their operating costs. Once you’ve reached your break-even point, it’s time to celebrate: your business is no longer in the red, and you are officially earning a profit. This article will show you how to calculate your break-even point so you can make wise business decisions that support greater growth. Why your break-even point matters Entrepreneurs who attempt to run a business without knowing whether or when they’ll be profitable probably won’t be in …
