Can your business handle a sudden change? Try this quick stress test.

Dear Small Business Owner,

Running a business means planning for the unexpected. It also doesn’t have to be complicated. That’s why we’re sharing a Simple Stress Test Worksheet to help you see how your business would perform, for the rest of the 2025 calendar year, if:

✅ Sales dropped by 20%
✅ Costs increased by 10%
✅ Both happened at the same time

Why use this?

When an economy hits a rough patch small businesses almost always feel the pain first. In a slowdown, spending habits can quickly shift away from small businesses. Inflation, supply disruptions, and higher interest rates all affect your bottom line. If you wait, it might be too late to adjust! 

✔️ Identify risks early
✔️ Plan how to adjust pricing or expenses
✔️ Gain confidence in your financial decisions

 

Considerations for Sales Projections

• How will holidays affect sales for your business?
• Is there a large order on the horizon for a specific month?
• Considering your capacity, are your projections realistic?

 

Thinking about Results

• If your sales revenue decreases by 20%, can you still cover your expenses?
• Does the cash you have on hand cover the gap left by a 20% sales decrease?
• If sales revenue decreases by 20%, and you don’t have enough cash to fill the gap, what business decision should you make? (i.e. Should you reduce your marketing budget for the next month? Should you stop making a certain item?)

 

Relevant Accounting Terms:

• Fixed Costs – costs that have to be paid even if no sales are made. (rent, utilities, salaries, internet, phone)

• Variable Costs – the amount of money it takes to produce one unit or typical offering. (Cost of Goods Sold “COGS” or ingredients, packaging, labor, and payment processing)

• Sales Projections – are based on the number of sales in the past month, quarter, or year. 

 

📝 How to use it:

1. Click the link “Stress Test Worksheet” or Save the pictures.
2. Print them out.
3. Enter your information.
4. Think about how you would respond if these changes occurred.

We’re here to help Pittsburgh small businesses thrive online.

If you have questions about using this worksheet or want to discuss your results, reach out anytime.

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Prepared for you by YinzMart
Empowering Pittsburgh’s small businesses to thrive online.
www.YinzMart.com | admin@yinzmart.com