24 Frank Lloyd Wright Drive, Suite D2000
Ann Arbor, Michigan 48105
You should think of business analysis as a tool to aid strategic decisions and direction, understand and improve your business operational and financial position, set financial or bottom-line objectives, and facilitate organizational efficiency and effectiveness.
One way to perform business analysis is to set Key Performance Indicators, or KPIs, which measure a company's performance outcomes against internal or external targets, such as financial and operational goals. Internal targets or goals refer to a your company’s business strategy and objectives, while external targets or goals refer to your industry peers and competitors. KPI examples would include targets of increasing sales by a certain percent, increasing customer retention, increasing profits or decreasing certain expenses. Key performance indicators related to financial performance focus on profitability, liquidity, solvency, and efficiency, utilizing financial ratios to measure financial results. For example, in measuring profitability, the Net Profit Margin ratio measures what percent of total revenue ends up as net income for your company after all expenses and taxes are considered. In measuring liquidity, the current ratio measures whether your company can pay its short-term obligations with the short-term assets, such as cash and cash equivalents, it has available on hand.
This is commonly referred to as Financial Analysis, and utilizes your company’s financial statements to extract amounts from the various account categories to calculate ratios and analyze the results to interpret them and make strategic decisions. Financial Analysis is also used to prepare Financial Forecasting, which takes into consideration past and current financial and operational company performance, as well as other business environment factors, to forecast future performance to also make strategic decisions and determine appropriate business solutions.
Seeking business solutions from a professional can help shed light on new perspectives you may not have considered. PSED’s business consultants can help you reach your goals of having a successful growing business and help you solve problems along the way.
PSED’s Business Consulting Services include:
If you have questions regarding business consulting in Ann Arbor, please contact us at 734-665-4441 or fill out our contact form to schedule an initial consultation.
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