Traditional education methods use the straight line graphs to get students to understand the dynamics and characteristics of the Break Even Point.
However, because of their time consuming methods students and business leaders did not really explore the true power of this financial concept.
This method was useful for textbook descriptions and many CFO’s still today refer to these plotted points on a static graph to determine not only where the BEP resides on the sales curve, but also to determine the calculated “MARGIN OF SAFETY” for the budgeted turnover figures.
Despite these calculations on many occassions a business entity found itself in a cash flow crunch shortly into the new financial year.
This pressure was not expected by the business leaders and the reasons for it happening is not always understood.
The new D-LENS™ Logic-Model™
helps uncover the mystery surrounding what is happening on the ground and
facilitates better decision making by the entrepreneur.
It highlights the real cause of the “Divergence” from the budget numbers!
Try it yourself with our FREE Demo model and you will experience the power of this tool.