It takes very clear thinking to survive and thrive in business, especially during an economic crisis. Volumes drop, prices get driven down by desperate competition, costs keep rising. Margins disappear, cash flow is a nightmare and the bank gets anxious. How do you work your way through such pressures?
Every business is a set of interactions and dynamics with frequent changes in timing, volumes, prices and costs impacting onto the profits and cash flow. For example, if you took 20% off your prices and that doubled your volume, which in turn gave you volume discounts on materials and made a change of technology viable, what would be the overall result?
To evaluate such combination-punching of solutions, you need a simple-to-use spreadsheet that allows you to “What if...?” alternative strategies and to immediately forecast the profit and cash flow results of every change.
The big difference, between our model approach and others, is that the main assumptions are declared and their interactions are defined, so you know where the P&L and cash flow numbers come from. We have found that our approach is particularly persuasive with potential investors e.g. banks, white knights, grant selectors etc.