Why Old Fashioned Business Analysis Still Works

We live in a world where huge corporations exist almost entirely online. Companies like Airbnb, Facebook, Amazon, Expedia, many e-commerce retailers, cloud software and product sellers, and many more businesses have shown us that it’s possible for anyone to open a business; obtain quality “real estate” and even teach themselves a handy marketing trick or two to drum up a little business.

In addition, some seemingly regular folks are making big money without investing much money of their own or having any professional knowledge.

When we hear stories about the food blogger making six figures a year, or the Etsy crafter that’s now selling to department stores and shops in Beverly Hills, or the Ebay power seller that started when he was 15 years-old, it’s easy to get confused. Though the internet has allowed for more rags-to-riches stories than ever (simply because of the sheer number of people with access to information and resources), these are still just rags-to-riches stories.

Above all, most successful people (either naturally successful ones or ones that learned from others) tend to have similar personality traits — even at young ages; or even though they come from disadvantaged financial backgrounds. In this same way, successful businesses essentially have similar elements.

A Solid Foundation:

  1. a good product or service,
  2. an established need for the product or service,
  3. the product or service is selling at a good price point for both consumer and retailer,

Marketing that Works:

  1. current tactics,
  2. good/measurable ROI,

Good Customer Relations:

  1. nurtured long-term relationships,
  2. utilizing strategies that make the product or service attractive to new customers,
  3. a notably unique customer service experience,

A Good Reputation:

  1. a good online and offline reputation,
  2. a good reputation inline with peer reputations,
  3. a recognizable name (to the degree necessary for the business’ industry)

Yes, some people stumble on a formula that incorporates all these elements accidentally by luck or by natural gift. However, there are ways to incorporate these elements into any business model. In fact, businesses that have understood the value of financial consulting to build their business have been doing it for years.

What Good Old Fashioned Business Analysis Can Offer You

Whether your plan is to:

  • Launch a hot new online startup that will give some other established platform a run for its money:
  • Build up an established small business; or
  • Nurse a large, floundering corporation back to health;

Business analysis can take a look at the key components of your business like your sales, profits, liquidity, borrowing, employee compensation, assets and marketing; and begin to answer key questions like:

  • How does your company really measure up to the competition?
  • Is your marketing really working?
  • Where is your marketing falling short, or are you breaking even?
  • Where are you wasting money?
  • Are you motivating your staff properly?
  • Is your marketing plan still targeting the right demographic?
  • Who is your target customer and how well do you know him or her?

Once business analysis helps you answer the right questions for your business, you can start to build up your business where it needs it and turn it into the successful entity you want it to be.

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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