Not enough revenues...?

Break-even Analysis
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Anne-Laure, France

Not enough revenues...?

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?


Godon, USA

Not enough revenues

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

William Gomes, Brazil

See marketing planning

As the first activity, review the marketing plan and change the marketing approuch. The problem can ... Sign up

pradeep deo, India

Break Even Analysis-Not Enough Revenues.

I would suggest to Anne-Laure -France-that in such a situation pl .explore the possibility of apply... Sign up

Luciano Bergamaschini, Italy

Not enough revenues

Causes may be many and must be investigated (sales policy, low sales, commitment of possible distrib... Sign up

Richard D. Cushing, USA

Not enough revenues

You will get a much clearer picture of your situation if you back away from "variable costs" (alloca... Sign up

Humberto Ochoa
TQM Manager, United States

Not enough revenues

What Gordon suggest is what I would do in a low revenue situation. Additions can be the use of tools... Sign up

vincent, India

Not enough revenue

A lot of variables that goes into the operation have to be relooked into in terms of cost cuttingor... Sign up

Vivek, India

Not enough revenue

have seen this situation quite a few times in small & medium enterprises (SMEs). First, make your p... Sign up

Earl, USA

Develop a Variable (Flex) Budget

I would suggest developing a Variable (Flex) Budget to drive a definitive "Break-Even" during the Fo... Sign up

Alpin McGregor
freeelance, United Kingdom

Break Even and not Enough Revenues

There are only 4 variables in break even analysis. Selling price, unit variable cost, total fixed co... Sign up

Jane Williamson, Australia

When you're not Hitting Break Even

The BEP is a tool to calculate if you are making money or just very busy going broke. Having been th... Sign up


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