Look back at the financial report 3 years ago

[zihadhasan010]

Do a financial analysis, so we can see our profit trends.

Look from year to year, is there an increase or a decrease?

If there is a decrease, try to understand why.

Maybe there is a product that is not selling, or a new competitor has entered the market.
You have to watch every cent that comes in and goes out.
Check all income and expenditure records.
Identify the cause of the decrease in profits.

Maybe it's because the cost of raw materials is rising, or the market is slowing down.

After that, check the operating costs. Many kuwait phone data times, the decrease in profits is due to excessive operating costs.

Look at any unnecessary costs, or maybe costs that can be cut down.

Many businesses don't notice the small costs in business operations, but that's what can be the cause of this problem.

So you have to double check all the costs, from the big ones to the small ones.

Debt is also a factor that can reduce profits.

Are there any debts that we can settle using company money, or using company reserves?

After that, we need to look at sales trends .

Look for products that are no longer selling as well as they used to, or conversely, are there any products that are bestsellers.
When we know this trend, we can adjust our stock and marketing strategy.
If the business is profitable but the cash flow is unstable, this could be a sign that there are weaknesses in the payment process.

So we have to monitor our business cash flow .

Eliminate unnecessary expenses.

If we look at the financial report, there must be costs that don't have a big impact on the business.

For example, maybe there are subscriptions that we don't use much, but we pay monthly.

Once we have all this information, we can make a plan to improve profits, reduce costs, and repair the cause of the problem we identified earlier.

#2. Rearrange budget & cost planning for 2024.
We need to review last year's budget , make a complete list of our operating costs.

Look carefully at what needs to be maintained, what can be reduced, and what can be increased.

From rent, staff salary, utilities, to small items. From staffing, to marketing..

Once we have made a list of costs, we need to review our financial needs.

Are there any costs that can be reduced?

There may be some things we can cut down on, without having a major impact on operations.

Remember, reducing costs does not mean reducing quality!

In certain years, our fixed costs may increase.

This could include wage increases, rent, or utility costs.

So, make sure we factor this increase into our budget.