OBS provides one to one consulting services for small businesses. Our goal is to help business owners work on their business instead of in their business. Help them understand where their business is and how they can improve their bottom line. Here are a few things OBS looks at:
- Inflow which comes from operations such as the sale of goods and services, loans, lines of credit, and asset sales.
- Outflow which occurs during operations such as business expenditures, loan payments, and business purchases.
It’s crucial to balance these two figures and maintain a reasonable balance of cash at all times. An effective cash flow system will help you manage funds to cover operational costs and bills and help you foresee potential problems in the future.
The break-even point represents the sales amount—in either unit (quantity) or revenue (sales) terms—that is required to cover total costs, consisting of both fixed and variable costs to the company. Total profit at the break-even point is zero.
Develop Product Pricing
No matter what type of product you sell, the price you charge your customers or clients will have a direct effect on the success of your business. The basic rules of pricing are straightforward:
- All prices must cover costs and profits.
- The most effective way to lower prices is to lower costs.
- Review prices frequently to assure that they reflect the dynamics of cost, market demand, response to the competition, and profit objectives.
- Prices must be established to assure sales.