financial planning tools Archives | Numbers Knowhow

Pricing For Profit: 5 Key Numbers

Mahmood Reza — Mon, 23 Oct 2023 10:47:16 +0000

Wondering how to price your products or services so you can make a profit? It’s not as simple as it seems because it involves several things to consider. That’s why figuring out the right price is one of the biggest challenges business owners face. There are two main financial outcomes of pricing and it’s so important to understand them. And to know how to calculate them. Once you know what those two outcomes are, the next step is to consider five key factors that will help you set a price for your product or service that meets your business objectives. And finally, I’ll show you a FREE online pricing calculator that makes it easy to do all this math for yourself. Watch this video now and learn how to price your products or services for success! How to price your products or services so you can make a profit You need to make sure you’re covering your costs and making a profit. In this video, I’ll explain the two main financial outcomes you need to meet: Time availability, and Quantity of time. These two are essential to take into consideration because nobody can devote all of their time to […]

The post Pricing For Profit: 5 Key Numbers appeared first on Numbers Knowhow.

How To Use Financial Ratio Analysis

Mahmood Reza — Tue, 11 Apr 2023 08:46:28 +0000

Financial ratio analysis and how to use it is featured in your Numbers Toolkit. Business owners, analysts, as well as investors all use it. I have a vlog about what financial ratio analysis includes and how it’s used. In it, I talk about the four common areas used in financial ratio analysis, or quadrants as I refer to them there. They are: Profitability ratios, Liquidity ratios, Efficiency ratios, and Risk and return ratios. The video showcases and interprets those ratios with a worked example. So, if you want to find out more (and you’re a visual learner) click on the video below to really grasp this. Financial statements and their limitations Your financial statements, profit and loss and balance sheet show your profitability and financial position. These accounts record your performance. However, they are limited in use. This is because no indication is given as to whether the results are favourable or unfavourable. For example, you wouldn’t see anything in the profit/loss figures that will tell you if those numbers are what the firm in question is aiming for. Whether the figures are satisfactory for the company remains to be the subject of analysis which will have to take […]

The post How To Use Financial Ratio Analysis appeared first on Numbers Knowhow.

How To Make Financial Projections

Mahmood Reza — Tue, 11 Apr 2023 08:41:08 +0000

Do you want to find out how to make financial projections and how to do it realistically? Here’s an easy-to-understand guide about making financial projections. A financial projection – meaning A financial projection is a forecast of the revenue and expenses that you expect for your business for a given period of time in the future. It usually contains predictions of several outcomes within. So, you can make a projection for your business in the case of sales or certain costs increasing/decreasing. In a sense, it gives you a plan B, and C… It doesn’t necessarily mean that it will pan out. Despite lacking accuracy, as it is a projection, it’s still a necessary part of business planning and development that you need to do each year. The reason being that it helps tremendously to set your business on the right path. And what it also does is it prepares you for the future. So, how do you actually make financial projections for your business? Let’s have a look. Part 1: Forecast sales What’s probably the most exciting part of it is projecting your sales. This is usually the first step in the process, too. Forecasting sales for existing […]

The post How To Make Financial Projections appeared first on Numbers Knowhow.

Why Is Cash Flow Planning For Business Important?

Mahmood Reza — Thu, 07 Jul 2022 21:46:27 +0000

Cash flow forecasts or cash flow planning for startup businesses, for example, has to do with estimating or forecasting your likely future sales and expenses. But why is cash flow for business important? Well, cash flow planning, no matter what kind of business you’re running, is an absolutely vital business tool as it indicates whether you have enough cash to sustain your business and grow it. Even a simple cash flow forecast template in Excel can easily show whether more cash is going out of the business than coming into it. Why Is Cash Flow Planning for Business important? Using the example above, a cash flow forecast allows businesses to track the estimated or expected cash movements over a specific timeframe in the future. However, it pays to understand that a business’s profit at any given month end is not a true reflection of how much money is coming into it as revenue. How do you get a proper cash flow forecast. Well, use paper, spreadsheet or have your accountant it for you!. Using Numbers Know How makes it possible to estimate the amount of ‘money in hand’ you have at any moment in time. Similarly, if you take into […]

The post Why Is Cash Flow Planning For Business Important? appeared first on Numbers Knowhow.