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Not enough revenues...?
Anne-Laure
What should I normally do if the revenues do not cover the fixed and variable costs? What should I do if the revenues do not even cover the fixed costs?
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Not enough revenues
Godon Having been in this situation recently in our own business I offer this;
project forward the P/L, one year, even at the high level numbers.
make several versions, optimistic, pessimistic, best guess, or most likely.
If the trend is up you may be able to borrow, get a line of credit or factor your accounts receivables.
If the trend is down or no change, then yo look to cut overheads, by sub leasing assets or property not used, substitute staff with your own efforts, (is it your company, i am making that assumption.)
Address the revenues, go get more business.
Address Act Rec, put pressure on customers to collect.
Let everyone know in the company that their income depends on urgent and coordinated effort.
Good luck
Gordon
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