4 ways to find and fix small business cash flow problems

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Nov. Sales $100 100%

Cost of sale $50 50%

Fixed costs $40 40%

Profit $10 10%

Nov. Sales $90

Cost of sale $50

Fixed costs $40

Profit $0

Nov. Sales $112.5

Cost of sale $62.5

Fixed costs $40

Profit $10

Nov. Sales $100 100%

Cost of sale $50 50%

Fixed costs $40 40%

Profit $10 10%

Nov. Sales $110 100%

Cost of sale $55 50%

Fixed costs $45 41%

Profit $10 9%

10% higher fixed costs

•𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐴𝑅 𝑂𝑣𝑒𝑟 𝑇ℎ𝑒 𝑌𝑒𝑎𝑟∗365

𝑇𝑜𝑡𝑎𝑙 𝑂𝑛−𝑐𝑟𝑒𝑑𝑖𝑡 𝑆𝑎𝑙𝑒𝑠

DSO

Agriculture 19.00

Mining 52.00

Construction 43.00

Manufacturing

Leather/Textile/App 34.00

Chem. Petrol. Metal 48.00

Wood Related Prod 33.00

Trans-Communic 34.00

Wholesale

Non-Durable 39.00

Durable 31.00

Retail

Hardware 22.00

Gen. Merchandise 4.00

Automobiles 9.00

Apparel 2.00

Furniture 16.00

Restaurants 1.00

Financial Services 1.00

Business Services 42.00

Service Industry 15.00

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Slice of Pizza $10

Cost of sale $2

Profit $8

Profit Margin %

Agriculture 2.58

Mining 0.00

Construction 1.74

Manufacturing

Leather/Textile/App 1.64

Chem. Petrol. Metal 2.23

Wood Related Prod 2.16

Trans-Communic 1.84

Wholesale

Non-Durable 1.40

Durable 1.11

Retail

Hardware 1.11

Gen. Merchandise 0.16

Automobiles 0.84

Apparel 1.35

Furniture 0.92

Restaurants 0.43

Financial Services 1.29

Business Services 1.75

Service Industry 0.77

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