Chapter survival toolkit
Overview
This chapter focuses on analysing trends – such as the path of monthly sales or quarterly production. This is perhaps the core of the book with regard to understanding the numbers. With the advent of spreadsheets this analysis is remarkably easy to do, and very instructive. It gives you a good feel for what is happening to your business.
It also helps you find relationships between your figures and other indicators. For example, you will be very much on top of your business if you can develop rules of thumb such as ‘a 10% increase in spending on advertising boosts sales by 2% after two months’ or ‘our sales continue rising and peak eight months after the economy starts to enter recession’. For probably obvious ...
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