Segment Current year 2nd year 3rd year (e.g. by area, product, store, customer type, distribution method) Total $ Vol. (units) Market share % Total $ Vol. (units) Market share % Total $ Vol. (units) Market share % Total sales ($) $ $ $ What is your for reaching these targets? How can you maintain/increase your market share over the next 2 years (i.e. what is your general )?
Intellectual property can give your business its competitive advantage. Conducting an IP audit will help you find out what IP assets you have, and how you can protect them. Briefly describe your IP assets. What protection do they have? IP asset Type of protection Expiry date Conditions of protection Insurance Choosing the right insurance will help you manage and reduce potential risks. You should regularly review and update your insurance, especially as your business grows or changes. Describe your - including items and sums insured, premium paid and the frequency of the review of your insurance needs:
Net profit margin (%) (Net profit x 100) ÷ Sales The net profit margin is net profit expressed as a percentage of sales. Shows how effectively your business turns sales into profit. Break-even point Fixed costs ÷ Gross profit margin The break-even point is the point at which total revenue equals total expenses. Shows the minimum sales required to cover costs (i.e. to ‘break even’). Margin of safety Total sales – point Shows how much actual or forecasted sales exceed the break-even point. Shows how much ‘breathing room’ you have (i.e. how much sales can drop before you start making a loss). Current ratio Current assets ÷ Current liabilities A measure of your business' liquidity (i.e. ability to repay short-term debts). A ratio below 1 shows liquidity problems. Current trading level per month Annual sales ÷ 12 Used to determine average monthly sales. Useful for analysing and setting sales targets. Budget sales level [Overheads + drawings + loan (principal)] ÷ Gross profit margin This ratio indicates the level of sales needed to achieve the desired profit on drawings and the repayment of the principal. Debtor days (Trade debtors x 365) ÷ Credit sales per year This ratio approximates the average number of days debtors are outstanding. Creditor days (Trade creditors x 365) ÷ Credit purchases per year This ratio approximates the average number of days creditors are outstanding. Days stock (Closing stock x 365) ÷ Material used or stock purchases This ratio approximates the number of days stock is held without replenishment. Stock turnover Cost of goods sold ÷ Average stock value This ratio is used to approximate the number of times in a year the stock turns over. Greater stock turn reduces working capital. Gearing ratio (%) (Borrowed funds x 100) ÷ Total assets This ratio is used to ascertain the extent to which the total assets of the business are used for borrowed funds. Debt to equity ratio Total liabilities ÷ Owner’s equity This ratio shows the relative proportion of owner’s equity and debt used to finance your business’s assets. Asset turnover per annum Total sales ÷ Total assets This ratio is used to show the extent to which total assets are used to produce sales. Conclusion Key points for action plan (e.g. to raise with your ):