Vivinavi : World : () World

Find Info

316th Ippankai Free Zoom Meeting － What is Transcending Breakeven Management?

● Hosted by ： One Flag Society Entrepreneurs ・ Free small business support group.　Free study group on the 3rd Saturday evening of each month at 6pm on Zoom.　www.hitohatakai.org
●Date and Time ： March 16, 2024 6pm ～ 8 ： 30pm
●Register at ： Imagination Garden hitohatakai@gmail.com 323-377-5530
Zoom Invitations will be sent out March 14.
If you are not a member of Ichihata Kai, please contact Ichihata Kai and complete the membership process before offering to join ZOOM.
_____________________________

●Ensuring stability in business management ・ Knowing and achieving sales targets, ・ securing sufficient funds at hand are necessary.　The break-even point is the key to success in business management.

●Businesses go bankrupt when they run out of money.　

However, funds do not just disappear one day; they gradually short-circuit and eventually become unmanageable and bankrupt.　Usually the danger signals can be identified in advance.

●The danger signs are
① running in the red （ high costs （ variable and fixed costs ） ・ sales decline ）
② total profitable but with a loss-making division ③ Sales of hot-selling products have stopped
④ Employees are quitting
⑤ Morale is down
⑥ Cash flow stopped
⑦ P/L in the red
Because these danger signals are not addressed at the time they appear, the dangers begin to snowball and eventually reach a state of unstoppable momentum.

●That is why it is important for managers to prepare danger alarms to avoid such a situation.　That will be the role of the break-even point.

●Break-even point can help you to detect when you are approaching the danger zone, and at the same time, it can tell you how to respond to a significant increase in costs or even inflation.

●Break-even point indicates the amount of sales that are not profitable, but at least enough to keep the company from going out of business.　In other words, it is an indicator that if sales increase above that number, the company will be profitable.

●It is the manager's job to figure out how to raise that figure, and he or she will do so by lowering variable and fixed costs or by raising prices.

●But there is actually a point to be careful about the break-even point calculation.　What many businesses should consider is their strategy to pricing.　Pricing mistakes can lead to a loss of competitiveness ・, distribution ・, price/value correlation ・, consumer's pocketbook , etc., and can significantly affect sales or profit margins.　Many managers automatically price their products inappropriately with a one-size-fits-all markup and can easily run into profitability problems.

●Many people immediately start cutting costs when profitability deteriorates, because they can do it on their own.　Many people immediately start cutting costs in response to declining profitability because that is something they can do on their own.　On the other hand, they know that raising prices may cause consumers to leave and that it is not so easy to achieve.

・What management really needs to do, however, is to review the products it handles and the services it offers, and to develop a pricing strategy.　Because products ・ that sell well contribute to the company's cash flow and profit, but products ・ that move only occasionally are just a burden.　It is not OK because the whole business is profitable, but because if everything is not running efficiently, it will only worsen profitability.　If the break-even point is calculated without considering the selection of products and services, the same trouble will occur again.

How should the selection criteria be set?

●This time, we would like to consider various scenarios by making full use of the break-even point, taking this into account.

The world is constantly changing.　It is your duty as a manager to keep up-to-date with the latest information and be prepared for it.

**********************************************************************
Theme ： Management using the break-even point ！
*** *******************************************************************

●There will be plenty of time for Q&A on the day, so please come out if you have questions.
All are free of charge.

● Your Business Survival ・ Prosperity is the Japanese American Community ・ Don't forget, it's vital to the community.

●Shoichihata Kai monthly meetings are not a place for recruiting, selling your products ・ or services, but a place to exchange knowledge ・ on how to develop your business.

See you on Zoom.