How to Succeed in Business

Success in business depends on more than profits. It also depends on planning positive liquidity and cash flow which is ultimately what success depends on.

Starting and Staying Successful

In business the secret of success starts with making profits by offering products or services people will want to buy at prices they are prepared to pay. Once you've got that right, staying successful means never running out of cash.

Business failures are always the result of running out of cash regardless of profits or losses. The majority of companies that go into administration or liquidation do so while still showing retained profits in the balance sheet.

Individual years' losses in the income statement or the profit and loss account do not necessarily mean failure. As long as a company can continue to meet its financial obligations as and when they fall due it is solvent.

Forecasting Liquidity

Cash flow comes from a company's liquidity. It represents a surplus of cash plus cash convertible assets such as accounts receivable and stock less current liabilities i.e. debts payable within twelve months. 

The most important part of any business plan will therefore call for an accurate and uninterrupted liquidity forecast, one of the many forecasting jobs that Figurewizard undertakes for its users.

Forecasting Profits and Cash Flow

Figurewizard forecasts are produced in a simple and straightforward yet comprehensive fashion. All that is needed are forecast sales, margins, overheads, asset purchases and sales and simple cash ratios for one, two or three years.

From this our system produces all of the forecasts for profits, cash flows, balance sheets, analysis of overheads, assets and liabilities, VAT transactions and corporation tax –  essential elements for successful planning.

All entries with the sole exception of company cars are entered exclusive of VAT as, like everything else this is automatically calculated.

Assessing Figurewizard

Interactive working examples of the forecasts can be viewed by clicking on the "sample forecasts" or by following "useful links" below. Changes can be made either by selecting "edit this forecast" or better still by using our unique What-If planner.

How Much Does Figurewizard Cost?

The annual subscription of UK £20 (approx. US$32 or €25) enables you to save up to a hundred full sets of forecasts.

All saved forecasts can be retrieved for updating and exported to excel for formatting and printing.

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