August
In August Dolores boutique made the least amount of sales. They made £21420 of sales in august this is significantly lower than other months e.g. £10000 lower. This is probably because the customers where on holiday and Dolores boutique didn’t have a lot of customers. Dolores boutiques closing balance for august was -£23915 which is the lowest they have had up to that month. In august Dolores boutique can avoid a negative cash flow by lowering their expenditure. They can lower the amount of money they spend on stock. They can lower the stock from £15300 to £11000. This will help them get a positive cash flow
March
In March Dolores boutique made £31500 from sales which are lower than they made the previous month and the month after. Dolores boutiques closing balance for March was -£6225. This set the business back a lot as they are more in the negative balance for the next month. Dolores boutique can avoid negative cash flow by decreasing their purchases from £22500 to £19500.
July
In July Dolores boutique made £31500 from sales which are a lot lower compared to the previous months. The reason for this can be that the summer season is coming up and people will want to save their money for holidays or trips. The closing balance was -£17915 which means they did not make and profit. For Dolores boutique to avoid a negative cash flow, they can decrease their purchases for that month from £22500 to £18000.
November
In November Dolores boutique made £50400 in sales which is a lot higher than the previous months. The reason the sales where higher is because November is close to the Christmas season and people tend to spend a lot more money on presents and gift cards. But unfortunately there closing balance was -£32720 this is because they bought too much stock. For Dolores boutique to avoid having a negative cash flow they can reduce the amount they spend by reducing their purchases from £36000 to £32000.
December
In December Dolores boutique made £60000 in sales which is the highest they have ever made. This is because it is the Christmas season and people are buying presents and also spending money on clothes as there are sales and it attracted more customers. However Dolores boutique made a loss that month as they spent £44000 on stock. Although Dolores boutique made the most amount of money from sales they could not convert this into profit or a positive closing balance. Dolores boutique can avoid negative cash flow by decreasing their expenditure. For example they can decrease the amount they spend on stock at the end of the month, if Dolores boutique was to spend £35000 on stock rather than £44000 they can have a positive cash flow.
The potential dangers that can occur with these changes can affect the business a lot. For example if Dolores boutique increases their rent prices the people that are renting the property might leave. Another potential danger will be that lowering employee wages will mean that the employees will be less motivated and possible leave the job.
