Not every sale is reflected in cash at the cash register

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You have opened a company and are eager to see customers buying and your cash flow increasing. In your most pessimistic predictions, in a few months the company would reach its maximum monthly revenue level and the break-even point would be inevitable, just as you dreamed…

In practice, however, you begin to notice, from the moment you open your company, that revenue growth is not occurring as desired. How can you avoid this situation?

Here is a very important reminder. Every business in its early stages will have more difficulty raising cash than its established competitors. This is the rule, but of course there are exceptions. If the rule says that most businesses suffer from this problem, what can you do to minimize it?

First, when you make your revenue mexico phone numbers projections, don't forget to consider factors such as seasonality and growth rate as basic assumptions. Be careful with projections made in financial software and spreadsheets, as the technological features of these tools can lead you to make mistakes.

By providing several resources so that projections can be made quickly, they end up inducing the entrepreneur to make optimistic projections, with ever-increasing revenues and forgetting about factors that harm profitability, such as:

Loss of customers (yes, you will lose customers, as this is inevitable);
Bad paying or deadbeat customers (yes, you will have customers with this profile);
Diversity of payment methods (credit card, check, bill, etc. are more common than cash payments and this will harm the company's cash flow, since most sales are made on credit).
Therefore, try to balance your optimism with rationality and don't forget to apply a correction factor to your revenue projections, especially in the initial months. This will allow you to have a more realistic view of the company's future and understand more clearly how long the company will be in the red before it starts to make a profit.