Hosted by: Denise MacDonald and Steve Fisher
The TTM is an invaluable accounting tool that allows us to look back and spot trends over time. But to scale a business up or down through any market condition and survive, we must look forward and plan accordingly. A Pro Forma, also generated monthly, allows us to forecast how the business is likely to perform in the future by projecting the potential financial impact of hypothetical strategies. A Pro Forma empowers us to justify the decisions we make in our business.
In this session, we will explore:
- Using a Pro Forma to numerically test potential strategies in the service industry versus in the manufacturing industry
- How to calculate break even
- The role of break-even analysis in decision-making