Why are you in business?

• Your “Money Making Machine!!!”
• Lifespan of your “Money Making Machine!!!”

• “Your Moneymaking Machine” & the Negative Effects!!!

• Economic Conditions: NCA , Inflation , etc.

Lack of Demand for your product / service Competition

Economic Conditions – Some effects

• • Your customers cash flow problems affects your business … It is a ripple effect!
  • Difficulties obtaining credit!

Lack of Demand for your product/service

• • • There is no need for your product in the market.
    • Do you still purchase music from Musica?

What are the possible solutions?  

• Transform your business to keep up with the competition.
• Is there no hope for your business to continue successfully … then diversify

Transformation

• Purchase new fixed assets – eg. Equipment.
• Require down payment/deposit.
• Residual Value – can you afford it?
• Do you physically see your depreciation?

Diversification

• You are entering a business venture, with probably little or no experience.
• Banks will not accept the full risk – Client has to share in the risk.
• Source of funding your portion of Capital.

Save!!!

• While your money-making machine is young and ability to produce at its optimum…i.e.
• while your business has the resources and ability to generate profits.