Forecasting revenue is essential to a successful operation. Earning statements and forecasted earning statements can help you decide when to upgrade equipment, when to offline obsolete equipment, and when to add additional algorithms to your mining plan. One of the biggest challenges in mining is forecasting ROI and break-even timing. Online calculators only provide snapshots of potential based on market conditions at the time of calculation. To truly understand your business, you need more advanced calculations that account for changes in difficulty, new equipment, market price movements and relative trade values. By creating earning statements and forecasted earning statements you can make better decisions that can mean the difference between a profitable operation and an expensive hobby. This is particularly useful in early stage operations where expansion is still a question rather than a foregone conclusion.
It is true that most mining operations began in a garage or basement. Great foresight from founders can position a new company to achieve great success. With that success though comes the business administration tasks that many founders may not excel at. Running as fast as you can, and expanding at breakneck speed can increase your risk substantially. Without fully understanding your burn rates and anticipated revenue, it’s easy to make a bad decision with the best of intentions. Sometimes the decision is sound but the timing is bad. On great decision made at the wrong time, can have devastating consequences on a business.
Earnings statements and forecasted earnings statements give the information needed to make great decisions at the right time. By gaining a 30,000-foot view of your operations from a non-emotional, fact-based perspective will grant you the insight needed to execute your plans swiftly and without additional risk. VME understands this industry and space. With clients all over the world, we excel at finding your real bottom-line which gives you the facts required to not only stay out of the red but push your numbers higher into the black with intelligent and thoughtful strategy.