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........ by being able to answer just three questions. Quite
simply, if you can confidently answer just three key questions,
the chances are your business is under control.
1. How much profit do you need?
A surprisingly obvious - yet often overlooked - question.
And the best way of answering it is to produce a budget.
2. How much cash do you need?
Even the most profitable businesses can go bust. And the reason
is simple - lack of available cash. So how much cash does
your business need over the next year or two? A cashflow forecast
will help you find out.
3. Is your business performing to plan?
Having established what profit and cash you require, you need
to measure and compare it to the actual performance of your
business. Comparing actual and planned figures will help you
to achieve your targets and significant discrepancies should
then be looked at and remedial action taken as necessary.
If you need help answering any of these questions, or just
want a second opinion on whether your business is under control,
please contact John Moore on +44 (0) 1622 213747 or email
john.moore@dsh.co.uk.
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