Net Contribution and Cash Flow Analysis for a New Location

Two popular ways to project the results of a new location are an income-based net contribution statement and a cash flow projection. I’ll use an example new location decision to walk you through both analyses. In this video, I’ll:

  • Recommend how to show items for the new location and impacts on your existing locations
  • Show how to model price and sales cannibalization from the new location
  • Show how to reflect staff changes between locations, which can be complex
  • Point out differences between a contribution (i.e., income) projection and cash flow projection

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