Best Practices Management Includes Break Even Analysis, Says Biz Coach Terry Corbell

Aug. 29, 2011 - PRLog -- Many businesspeople are so busy reacting to challenges, they fail to budget time to determine their break-even point for success according to Seattle Biz Coach Terry Corbell.

“Good management means having the right information to alleviate uncertainty in business,” asserts The Biz Coach http://www.bizcoachinfo.com.

“To profit, you need the right tools,” writes the Seattle management consultant. “One important tool – know your break-even point (BEP).”

The profit professional says if it isn’t part of your financial planning, you can count on suffering from unnecessary stress – emotionally and financially.

“You need to be able to make the right decisions because positive cash flow is paramount to facilitate success,” writes Mr. Corbell.

The Biz Coach says there are multiple benefits to knowing your BEP, for example:

1. You can track when or if you’ll break even.
2. You’ll be in a better position to evaluate whether your new products or services are good ideas.
3. Whether to expand in other ways.
4. Businesspeople who perform such analysis are often more profitable.
5. In a loan scenario, the bank will want to know your BEP. Plus, you’ll know how much you’ll need to sell to successfully pay off the loan and to make a profit.

“Success can be dangerous as it sometimes leads to complacency in financial management,” warns the business-performance consultant.

“If your business is on a roll – your profits are strong and your cash flow is positive – you’re probably not worried about your financial position,” he writes. “But one thing is clear in business – you can expect negative surprises. You should be prepared for any contingency. And there are many.”

He names a few examples: You could lose your best talent, your products can reach the end of their life cycles, or you can be hit by an earthquake or hurricane.

You can read his full analysis – http://www.bizcoachinfo.com/archives/7960.

His business portal, The Biz Coach, provides countless business-coaching strategies: Planning, Operations, Marketing/Sales, Finance, Tech, Public Policy, HR, and Wall Street.

Plus, it has informative news videos: World, U.S. Business, Economy, Markets, Health and Sports.

Mr. Corbell's specialties: http://www.bizcoachinfo.com/managemen-services

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Seattle Biz Coach Terry Corbell is a business-performance consultant and profit professional. As a columnist, he authors performance-enhancing strategies at The Biz Coach: http://www.bizcoachinfo.com, Proven Solutions for Maximum Profits.