Business analysis can be one of the most valuable aspects to growing a business profitably. Without the right information, your business moves from problem to problem and putting out fires grows to be the sole work of management. The right analysis provides valuable insights and information which can be used to increase sales, cut costs, and improve customer service.
You may know your business well, but every so often, finances are impacted by things that are outside of your expertise. The right business analysis will give you tools to manage your company more efficiently. Business analysis should project finances, provide up-to-date reporting, and accurate budgets in order to understand where income and costs come from.
- Project Finances – You need to understand what trends are building in your business. Business analysis looks at trends in your company and trends in the industry in order to determine how your finances will change in the future. This analysis is the most difficult part of your finances and having the right tools is key to your success.
- Up-To-Date Reporting – Having the right information gives you the ability to address the costs associated with doing business. Reports, in order to be of any value, need to be up-to-date and timely. What does your customer acquisition cost? What are your labor costs like each month/quarter/year?
- Accurate Budgets – Being able to tell every dollar where it should go can change your organization from cost management to profit creation. Income and expenses are generally predictable. Therefore, if you know what is coming beforehand, you will have insight on how to decide what to do with it.
Does your business analysis give you the tools to know where your processes are going, the information to grow your business, and the road map to get there? The right business analysis will give you this peace of mind.
Remember, running a business successfully does not need to be complicated. Keep it simple!
For more information on business analysis, business planning, and ways to grow your small business profitably, please check out our website www.portalcfo.com. Follow us on Twitter @portalcfo
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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 manny@portalcfo.com.