Although we are seeing signs of general economic recovery, the last year has been a hard slog for small winery and vineyard owners. In an economic downturn, the luxury good, hospitality, and travel industries are often the hardest hit. Among our associates, chins are held high and stories of silver linings abound. But industry vendors and salesmen are telling a different story–one of back payments requiring COD status, higher returns, down trending sales, and equipment foreclosures.
Now more than ever, it’s important to have a clear-eyed view of your business’ health, ratios and sales trends. In a climate where bankers are looking at every new loan application with a jaundiced eye, and subjecting renewals to greater scrutiny, it’s important to be able to identify and address each of the signs that your bankers will be looking at. Even if you feel that your sales and bottom line are healthy, you may be surprised to see your business in a different light by applying some of the ratios below. And if your business really is healthy, then you should be able to present these ratios with pride and explain what you are doing to protect and increase them.
Source :: Central Coast Wine Blogs