There are many reasons for a company to conduct a business analysis on itself. These reasons should include everything from gathering data to managing it. It’s a project that needs to have its findings put into a readable format. A business analysis will illustrate the successful areas of the company, provide a path to increased success, as well as plan for the future. Here are five critical areas to focus your business analysis on for maximum benefit.
A company must decide how the balance between full and part-time workers will best serve its business. Research may show that increased staffing with part-time workers on weekends increases productivity. Doing this could also decrease overtime expense. Data may also indicate that salaries need to be increased to be more competitive with similar businesses in the market. Employee turnover rates as well as recruiting success also need to be analyzed.
Business Model Adjustments
The company may need to adjust their business model. After operating for a period of time, they may discover factors impacting the business that weren’t understood during the plan’s creation. Markets can change quickly. The influence of new technology may need to be included. It is also possible adjustments need to be made because the company is more successful than anticipated.
A company needs to closely examine their revenue streams. Decisions need to be made to increase them and add additional ones. This could mean increasing operating hours or offering more competitive products. New ways to create revenue may include expanding product lines, adding business locations, and more.
A key component of business analysis is knowing the competition. It may show that doing things different is necessary. Some companies have expanded and lowered their prices. Others have realized they must move to a location with less competition. Being able to compete more successfully may require changing a business process, updating technology and more.
The state of the economy has a major impact on the company’s profit margins. A business analysis may discover that rising costs are causing lower profit margins. It may also indicate investments in personnel, process improvements, and more will lead to an increase in revenue.
Remember, running a business successfully does not need to be complicated. Keep it simple!
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Manny Skevofilax is a consultant and speaker that helps his clients successfully navigate the challenges of growing their businesses profitably. Since 2003, Manny helps businesses enhance their results by using his experience in strategic planning, financial statement analysis, operations, organizational development, and team-building. His consulting firm, PORTAL CFO Consulting, Inc., has attracted clients from diverse industries in the United States and abroad.
Manny can be reached at 410-808-3441 or via email at email@example.com.