High prices do not mean lost profits

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The rise in energy prices and labor shortages will flow indirectly into almost everything now as freight, logistics, production and the other costs rise. In addition, the availability of steel, aluminum, glass and timber has declined and prices have risen. But higher prices do not mean lost profits. Defensive industries are relatively stable or immune to economic fluctuations. The future money flow is likely to remain flat so the salaries, spendings & debts are easy to predict.

Cyclical industries are sensitive to the business cycle: revenues are higher in upturn and lower in downturn. For a cyclical company, flexible spending and cost structure is important: it helps if the top line has fallen sharply. Machine learning can predict the 90-future money flow even if the customer behaviour (or spendings) is sporadic.

Improve productivity by minimising procrastination

Improve productivity by minimising those countless things that can steal your team’s attention away from work. Keep things simple, review goals daily and minimise time-wasting activities like meetings and procrastination.

Use productivity tools in money flow prediction, finance and marketing. Technology can be our biggest help and our biggest distraction. When used for good, tools can boost your business productivity.

Allocate resources profitably by using data insights

.Allocate resources profitably and optimise pricing by knowing exactly how much you pay to each supplier. Use data to re-negotiate agreements, both supply and demand side. Get better insights and do a comparison to the last month or last year smoothly. Consider competing options.

  • Zoom in to each customer and supplier with a full history & future

  • Be aware of the hidden spendings you may have missed

  • Use simple KPIs, like average revenue per account (ARPA) to optimise profits

Diversify your Customer base

Understanding who are your TOP 10 customers helps not only to boost top line, but also diversify your Customer base. Even if you have many customers, it’s risky if they are too similar and could be affected by a similar change in business or the market. For example, if all TOP 10 customers are from the cyclical industries or based in Sweden or the US, an unfavourable change in the exchange rate could see them all drastically reduce their orders.

Customer concentration risk refers to the share of an individual customer in total sales. For example, in e-commerce, rental or transportation, the concentration risk is often low, while in the project business, subcontracting in the metal or engineering industry, the concentration risk may be high. If possible, diversify the risk of concentration and reduce the impact of business cycles.

  • See how TOP 10 Customers looks to the comparison period

  • Zoom in to each customer and supplier with a full history & future

  • Predict churn and react faster than competitors

Be systematic with invoicing and Cash Flow

Regular invoicing keeps cash flow steady. The longer the payment delay, the more uncertain it is that you will never get the money to the bank account. Extend the payment time for purchase invoices, but never do so without agreeing it with supplier.

Predict 90-day money flow in seconds

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And yes, do a comparison to the last month or the last 12 months smoothly. get started →

The environment is changing rapidly right now. If you need to make better decisions faster, we’d love to serve you -fast.

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