OVERVIEW
Get assistance with your Business Analysis and Cost Structuring with OCFO.
Analyzing and understanding business operations and identifying any possible sticking points is an essential first step to realizing long-term efficiencies within your operation. Cost structuring, likewise, is a fundamental building block to ensuring profitability and success, and should never be neglected. As an entrepreneur, it pays to do the work upfront and ask the difficult questions.
WHAT’S INCLUDED
Get access to the right financial direction for your growing business.
Rate the health of your company’s current analysis and structuring by answering the following questions:
- How much money do you make on each product or service that you sell?
- How would a $50 increase in your price affect your overall company profit?
- Does your business have the ability to increase the number of units sold based on its current size, or will you need to scale your business and employ more people?
- How would an increase in the number of products sold affect your company profit?
- Is it better to focus your efforts on increasing your prices or increasing the number of units sold?
- How profitable is each employee in your business?
- What metric are you basing your staff bonuses on? Have you set metrics to measure their performance?
- If you are using machinery or equipment to deliver your services, do you know whether it is more profitable to lease or to buy that equipment?
- What would the impact on your cash flow be if you collected your debtors 5 days earlier or paid your creditors 5 days later or held stock for 5 days less than you currently do?
Yes, you may know the selling price of the item you’ve sold, but do you know what the cost is? Not merely the direct cost of the product, but the allocated costs of your marketing, electricity, rent, salaries etc. The money that you make on each product is also referred to as your profit per product or margin per product.
If you cannot answer any of the questions listed above, you need assistance in order to analyze your business and structure your costs.
TESTIMONIALS
What Our Clients Say.
Entrepreneurs change the world. They create growth, job opportunities and social impact. We serve entrepreneurs! Hundreds of founders and management teams tap into the expertise of their trusted finance and accounting partner to help scale their companies.
Business is about people. When you partner with Outsourced CFO, a finance professional or team with the right mix of knowledge, skills and experience is personally matched with your company – working with you to create a world class finance function for your growing company. Your success story is our success story.
PARTNERS
Our Clients.
RESOURCES
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FAQ
Frequently Asked Questions
What is business analysis?
Business analysis entails analyzing the finances, systems, controls and operations of the business.
What is the purpose of the business analysis?
The purpose of business impact analysis is to identify inefficiencies and blockages that are limiting the growth potential and profitability of a business.
What is cost structuring?
Cost structuring includes the review of the current structure of a business to determine if it is the most appropriate for the business. E.g. If a business is currently leasing an asset that is key to the sales of the business, how would the profits and cash flows change if the business were to buy the asset instead? Would the profits and cash flows increase or decrease over the short, medium and long term.
Are the employees of the business spending an unnecessary amount of time on manual interventions that can be automated? If these processes are automated, that allows those employees to work on more high-level tasks that bring in more revenue, or it could result in not needing to employ as many people as the business grows.
Why would a company need help with business analysis and cost structuring?
As an entrepreneur, you focus on growing the business as well as the day-to-day operations. You have a skill that very few people have. As your business grows, inefficiencies and blockages that could limit the growth and profitability of your business are naturally created. As an entrepreneur, your talents are best suited in continuing to grow your business.
In order to maximise profits and growth, those inefficiencies and blockages need to be identified and resolved. The best way to do this is through business analysis and cost structuring.
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