Understanding your business costs

Using a cashflow forecast can help your business to plan borrowing and indicate how much surplus money is likely to be available to the business at a given time and when the business will go into deficit or breach an over draft limit. Call the bank before this happens; get a consultant to help you with this if needed, a consultant being used will also give the bank more confidence in the figures you talk to them about.

Understanding how your costs and outgoings impact your business is a vital pratise to managing your business. Knowing what your costs are and using a previous bank statement to review what you are actually paying out or look at doing a simple profit and loss account or Comparable Farm Profit (CFP) can give you a quick and dirty check on costs and what might you be able to reduce.

Identify if capital projects be postponed or different payment structures be put in place.

What are the goals you have both personally and for the business, decide on the changes that can be made to help you achieve these and this may restructure the cost of the business. What do you want to do going forward?

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