Adding a New Location Video Course
Growth is exciting. We can take what’s working and do more of it for increased profit and cash flow. Adding a location is one way to do this. A new location is a major commitment of time and money with the potential to expand our business and increase our profit.
A new location is a major commitment of time and money with the potential to expand a company’s business and increase profits. New locations also come with risks. Sales may be lower than expected while costs are higher. The new location may pull more resources from existing operations and strategy than anticipated. Could we have better anticipated this?
This video presentation will:
- Explore some of the key financial considerations when opening a new location.
- Describe how to project common revenue and expense items for a new location.
- Explain how to build a net contribution and cash flow forecast.
- Illustrate analysis methods like breakeven analysis and scenario analysis
- Demonstrate scenario analysis and sensitivity analysis with Excel’s Goal Seek, Scenario Manager, and Data Table functions
- Define common metrics like NPV, IRR, and Time to Breakeven. I’ll show multiple ways to analyze this in Excel. For Excel gurus, you can do this yourself. For others, this gives you an idea of what an accountant, analyst, or consultant can do for you.
- Reveal common decision mistakes people make when analyzing new locations and how to avoid these mistakes.