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?
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Godon, USA
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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
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William Gomes, Brazil
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See marketing planning
As the first activity, review the marketing plan and change the marketing approuch. The problem can ... Sign up
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pradeep deo, India
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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
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Luciano Bergamaschini, Italy
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Not enough revenues
Causes may be many and must be investigated (sales policy, low sales, commitment of possible distrib... Sign up
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Richard D. Cushing, USA
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Not enough revenues
You will get a much clearer picture of your situation if you back away from "variable costs" (alloca... Sign up
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vincent, India
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Not enough revenue
A lot of variables that goes into the operation have to be relooked into in terms of cost cuttingor... Sign up
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Vivek, India
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Not enough revenue
have seen this situation quite a few times in small & medium enterprises (SMEs). First, make your p... Sign up
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Earl, USA
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Develop a Variable (Flex) Budget
I would suggest developing a Variable (Flex) Budget to drive a definitive "Break-Even" during the Fo... Sign up
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Jane Williamson, Australia
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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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