The Working Capital Cycle

The working capital cycle is a proportion of a businesses working capital that is used to allow a business to operate normally, it is the funds required by a business in order to continue trading efficiently. Without a business being able to calculate how much working capital it needs in order to operate, then it may find it hard to continue to function, the working capital cycle involves anything from inventory and supplies, to production and storage. Without proper working capital, it could lead to business failure. The Working Capital Cycle The working cycle has limited use as a single… Continue reading The Working Capital Cycle

Factors Affecting Sales Forecasts

Sales Forecasts are charts and graphs, equations and educated predictions that allow businesses to predict future sales with a degree of accuracy. Consumer Trends – People being proud of bargains and discounts. sales forecasts become harder to predict when consumerism changes. Economic Variables – Recessions, Booms and Recovery. Competitors Actions – loss leaders and pricing strategy may try to undercut you. Digital Music for example, as become harder to predict as people have found new ways to obtain it illegally. Fashion Items have an unpredictable life span. Businesses use a range of forecasting tools to make forecasts No single technique is… Continue reading Factors Affecting Sales Forecasts