Financial Addressing in the Long Term Business for You

Given the necessary premises, the economic-financial plan serves two very importantthings,verify the economic and financial feasibility of a business idea. Checking the economic and financial feasibility of a business means understanding if this business has to be done or not. Studying in advance if a business idea is “feasible” means understanding whether the idea makes money (or not) in the long run. And this analysis is carried out in a future time horizon of three to five years. This is a check carried out on the forecasts of revenues and costs, as well as on the financial structure of the company. Its purpose is to control the cost creation mechanism following the achievement of revenues. A Finance specialist can help you out in these matters. The Other Factors: Furthermore, it is useful to understand if there is money to reach the economic goals that have been set. What does this actually mean? A very simple example can help us better understand. Suppose you have to buy a machine (which costs 100,000 dollars). You need this machine to produce 1,000 units of the X product you sell for 1,500 dollars per piece. This means that you have to face a double…