Enter a new level of possibilities when a company starts expanding. Figuring out when a company is ready to expand through adding another satellite location. Look at a company’s income. Overhead should stay pretty regular, unless employees increase, or taxes, rent, etc. change in anyway. Focus a budget based off a “Business Plan”. Numbers should outshine that of a “Growing” business structure.
A growing company needs to hit at least a minimum of their overhead in one week. It averages out to be a second month within the next two weeks and finally hitting some expense of their third month in the last week of a month. When “Expanding” a company, base efforts on income over expense with this formula. In one month a company should be covering 3 months worth of expenses. Example below.
Week 1 : $7,000
Week 2 : $3,500
Week 3 : $1,750
Week 4 : $1,750
Based on a company still spending only $3,500 a month on overhead, their goals should look like the above example. If this model was based on a company looking to expand, they would be able to do so if their income was maintained as such for a minimum of a year. Once a company has generating this kind of income, while also showing signs of an increase over that time, for a year; then it is projected that company will continue to do so.
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