The 3 Key Models to avoid the Economic Crisis in Companies

The 3 Key Models to avoid the Economic Crisis in Companies.

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1 Type 1 questions to Avoid the Economic Crisis in Companies

2 Type 2 questions to optimize profitability

3 Type 3 questions to improve results

Type 1 questions to Avoid the Economic Crisis in Companies

Are we going to have money in the coming months to face short-term payments?

Do we need external financing to weather the storm?

When will we start to see green shoots?

Can we make investments with our own funds or do we need financing?

Answer to these questions: We use a Treasury Forecast model

Download Excel Cash Flow Forecast Report M15

Type 2 questions to optimize profitability

Are we capable of adapting the structure to changes in the market?

What impact will the increase in raw material and energy costs have on the result?

Can we reduce the costs of the structure if there is a forecast of reduction of the total margin?

What impact will hiring more employees have on the result?

Is a better or worse result expected than the previous year?

Can we do something to improve the expected result?

Answer to these questions: We use a model of Budgetary Control based on Projections

How the Budget Control service works

Advantages of implementing a Budgetary Control System with Projections in your company:

Maximize PROFITS
Improve internal processes to be more competitive
Anticipate decisions to achieve desired results
Encourage the entire organization to continuously improvement and not be left behind
Delegate responsibilities and Evaluate the performance to Directors

Budget Control Excel Year-to-Date & Full-Year Forecast

Download Budget Control Excel M15

Type 3 questions to improve results

What pricing strategy should I establish, based on costs or according to market prices?

What margins can I get with the established pricing strategy?

Based on the expected margins, will I exceed the break-even point?

What volumes do I have to sell according to the pricing strategy to be in line with the established profitability objective?

What products are the ones that are going to generate the most money for the company this year?

What profitability am I going to obtain for each one of the clients based on the established pricing strategy and the expected volume of sales?

What margins and what global profitability will I obtain according to the different scenarios proposed, optimistic, pessimistic, normal…?

Answer to these questions: We use a model of Calculation of Forecasted or Budgeted Costs

J.A.T
This way of keeping a budget control changes everything. We had never tried it because we did not think it would be useful. But with Dani’s methodology we now see the potential and we think it will help us in very many ways.

R.M
The Budgetary Control technique and tool is helping us to better manage expenses and that allows us to make better decisions. A great contribution to our management control.