You should put this new knowledge in place to gain solid footing for your future. Include it directly in your foundation and thrive plans. So, before you start planning, sit down and think through what business you should be in to survive and thrive in the next few years. Let’s […]
Observe the variable percentage relationship of the EBITDA (Earnings before interest, depreciation, and amortization) to total revenue. (In the example, this is forty percent (40%). Divide the total “fixed expenses” ($3.9M in the example) by the EBITDA percent to compute the company’s break-even revenue level with the current “fixed expenses” […]
This is the critical recurring process of planning to move from where you are now to where you want to be. A small example might be to totally eliminate all inventory in a particular product group from a vendor. This might be done to radically change offerings or to reduce […]
Focus on things that might help the business provide better services, and so on. If the business is easily movable and your current lease is nearly up, make a move now to obtain favorable lease terms. Or, perhaps you have too much space. Try to convince the landlord to take […]
Feel the fear and do it anyway … as the commercial says. Buy time with prudent, creative actions … think and rethink before you act. But act in the time frame necessary to resolve the problems in front of you so you can get to the ones you cannot yet […]
By reacting positively, your business may not only improve today, it will also have a head start on tomorrow. These steps assume you can get an early indication on how to reposition your business in a changing marketplace. Some Proactive Measures Here are some proactive measures to integrate into your […]
Exercising your thinking on the financial side of this picture should help you as you work “on your business” to change it to meet new market challenges. Third, once you have a foundation plan in place, adopt a strategy to thrive over the next two to three years . This […]
In a down market, they need business and will want to solidify their customer base. Ask for an early payment discount of 4% or 5% if your anticipated cash flow permits. These types of terms can put you ahead of the competition and keep you there. Every small increment in […]
Dickens was referring to a revolution instead of a temporarily disrupted economy or a longer recession. His words are still a good tagline for a disrupted independent business scene. When you look back at a particularly difficult time, it may well go down in history as the era when investors […]
Call your banker and ask for loan-payment deferrals. You may need a ninety-day period with no mortgage or other loan payments. Again, ask for the flexibility you think you need to be able to allocate your limited cash to other uses. Detail out for them the limited cash flow to […]