Showing posts with label break even. Show all posts
Showing posts with label break even. Show all posts

December 29, 2018

Sales - Cost = GP, Many billion dollar companies are not making the mark, or would be bankrupt for not making the mark

PAGSASANAY SA TAGUMPAY

   Why we need to plan? (and develop the skills and discipline to do this)

    Why we need to pay attention to our operations:  reducing expenses and costs?

     Why we need to pay attention to our collection, (ICR) cash flow especially collection of
      accounts in arrears.   

     Notably these areas of concern has met resistance and inaction from many staff.   Look at these
     real life examples

1.  Sales - Cost =  GP;   also Break Even sales (the point at which the company neither makes
     profit or loss, but merely to recover cost:     Total Fixed Cos/Gp

2.  While the primary purpose of the business is to create customers it must do so without losing money, and/or recover the cost.

3.  Some big companies despite their size and popularity are not making the mark, notable are Amazon, Uber, Spotify, Sears/KMart, and many more.  Some fail to make the mark, because of cost structure, some are not for making the sales target (declining sales performance).  This means lack of marketing drive/efforts, lack of leadership.  THESE ARE VERY LARGE COMPANIES!!! IN DOLLARS

Can this happen to Holy Gardens group?  Why or why not?  Do we care?

4.  Are we making some profit?  Are we meeting the sales targets, are our cost structures right?  How do we know?  (Do we have regular reports?)

5.   If a company fails in the payment of its liabilities, it may file for bankruptcy proceedings.
      What is the effect if filing for bankruptcy?  Why does a company become bankrupt?  How do
      we avoid this

We have warned we are only 90 days from failure/bankruptcy.  What must you do?