By Daniel Cavalli (Part one)

The hard part is recognising the crisis in the first place so that you can do something to fix it before it is too late. There are steps that may enable you to handle a crisis in your business successfully. Complete the checklists below to assess your situation. Here is the first step:

Step 1. Check If Your Business Is In Crisis
Is your business generating enough income to cover your expenses without having to touch your savings? If it is not there are many reasons why this may be the case. This analysis of your situation is not comprehensive enough to cover all situations but should give you a broad picture of your situation.

Evaluate the information if it suits, that’s great. If it doesn’t, discard it. Basically you should proceed if the money side of your business needs attention. Go ahead and complete (“Doc 1”) because we need this information to go to the next step. Once that is completed you will have two important pieces of information.

1.    How much you spend in your personal life
2.    How much you need to earn to support that amount (plus or minus)

DOC 1              

Financial Analysis                                                 Monthly            Yearly   


FIXED DOMESTIC EXPENSES

Mortgage Payments or Rent            
Electricity            
Rates           
Fire and General Insurance            
Personal Accident or Disability Insurance           
Health Insurance            
Car Hire Purchase/loan           
Other Hire Purchase/credit cards           
Debt Reduction – Personal Loans Overdraft ECT           
Other           
Club Dues           
School fees           
Food and Living expenses           
Telephone            
Other           
   
TOTAL MONTHLY                                              $                       $    ………….

VARIABLE DOMESTIC EXPENSES

Medical, Dental, Chemist etc (net After Refunds)
Clothing and Footwear           
School Requisites – Fees, books and sports           
Dry Cleaning and Laundry           
Entertainment, Theatre, Amusements           
Tobacco, Liquor other Personal Items           
Home Maintenance       
Running Cost – Second Car and Fares            
Church, Charities Etc           
Sports and hobbies           
Vacations           
Motor Vehicle (1) Hire Purchase /Lease           
                         (2) Registration & Insurance           
                         (3) Repairs & Maintenance           
                         (4) Petrol Oil Tyres            
Other Traveling – Parking tolls Fares Etc            
Telephone           
Other – Charges A/C Gifts ETC           
                                                                                                                    
TOTAL MONTHLY                                            $                          $    ………….

OTHER EXPENSES 

Memberships           
Fees and other Self-Education               
Printing, Stationery, Postage ETC           
Telephone           
Newspapers and Periodicals           
Entertainment and Gifts           
Centre of Influence & Sub Agency Cost                
Other overheads – Rent Secretarial ETC           
                                       
TOTAL MONTHLY                                             $                        $    ………….

SAVING AND ACCUMULATION

Life Insurance and Superannuation            
Investments           
Saving – Bank, building society etc            
Other            
                                   
TOTAL MONTHLY                                             $_____________   $ ………………

NET ANNUAL INCOME REQUIRED                      $                        $

Dan Cavalli
If you really enjoyed this information and would like more details about this article please consider subscribing for the free enews the ABC’s of Success for Business and Personal Development Tips at http://www.commandobusiness.com home page.