Net Contribution And Cash Flow Analysis for a New Location

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 its 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

This video comes from my Analyzing Whether to Add New Locations Course at https://cfoperspective.com/add-locations-course/