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SET THE CONTEXT
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MARKET ANALYSIS AND BUSINESS POSITIONING
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DEVELOP YOUR SALES FORECAST
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DEVELOP YOUR OPERATIONAL AND COST PLAN
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DEVELOP YOUR CASH FLOW PROJECTIONS
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DETERMINE YOUR FINANCING STRATEGY
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INTERPRETING THE INCOME STATEMENT
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INTERPRETING THE BALANCE SHEET
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INTERPRETING THE CASH FLOW STATEMENT
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CONCLUSION
How to use the balance sheet
ACTIONS TO FIX PROBLEMS
- To improve liquidity:
- Reduce overhead expenses – rent, utilities, advertising, salaries and stationery
- Shed unnecessary assets
- Cut unprofitable products and services
- To improve financial strength:
- Reduce debt to keep ratio reasonable and stable
- Increase revenue with new and improved marketing and sales activities
- Reinvest money in the business to keep ratio stable