Business Analysis Software

About

Business Analysis Software will quickly build a forecast for your business (up to 10 years), determine the business value, break-even point and optimum price point.

Business Forecast

The Business Forecast Module generates a forecast to assess business performance for up to a 10 year period. The forecast is built by considering future changes in the macro and micro business environment and the impact on current business performance. From this basic data future revenue and costs are determined. Sensitivity Analysis (Optimistic, Expect and Pessimistic) can be applied to the generated forecast allowing a range of scenarios to be easily tested. This forecast provides a high level strategic budget overview, assists in the identification of business opportunities and risks, and delivers a quantifiable framework for business development strategies and actions.
Sensitivity Analysis applied to a business forecast allows a range of possible outcomes to be reviewed. Providing worst case to best case scenarios and allowing the business manager to assess, monitor and implement actions to best deal with these possibilities.

Business Valuation

The Business Valuation Module applies the base Forecast Analysis to generate a Business Valuation. It considers Owners Earning Power and the Required Return on Investment to develop a Business Valuation that reflects the potential to value add and considers the future business environment. This valuation provides strong support for business purchase, sale or financing negotiations. Outputs include up to a 10 year Forecast, Sensitivity Analysis, Investment Return, Net Present Value Analysis, and calculated Business Valuation (Expected, Optimistic and Pessimistic). Using a business forecast that considers the dynamic environment in which the business operates and the potential for developing future opportunities is the basis of a verifiable business valuation. Applying Sensitivity Analysis allows a range of scenarios and corresponding valuations to be analyzed.

Break-even Analysis

The Breakeven Analysis Module applies current performance data to determine breakeven points for Annual Revenue and Number of Sales. It applies the Annual Revenue, Total Variable, and Total Fixed values with the Breakeven Data values Average Sale Price and Number of Sales to calculate breakeven points. A Breakeven plot shows Annual Revenue and Total Expenses by Number of Sales. The Breakeven point is where Revenue and Expenses cross. Below this point the business surplus is negative (loss) and above this point the business surplus is positive (profit). The amount of surplus is the difference between the Annual Revenue and Total Expenses. Break even analysis is a relatively simple and effective indicator of a businesses profit relationship to revenue and in turn number of sales. It can also provide insight into the impact of future sales volume changes on business profit.

Price Analysis

The Price Analysis Module determines the impact of a price change on your business. It applies current Annual Revenue, Total Variable, and Total Fixed values with the Price Data values Sale Price Change % and Number of Sales Change % to project business surplus over a range of prices. Price Analysis projects outcomes for pricing from 50% to 200% of the current price and calculates the optimum price. The optimum price provides the highest surplus (profit). It can be utilized to test the impact of pricing changes on revenue and surplus and identify the Optimum Pricing to maximize business surplus. A Price plot shows Annual Revenue and Profit/Surplus by Average Sale Price. The optimum Average Sale Price is where Profit/Surplus is highest. By stepping through price ranges of 50% to 200% of the current Average Sale Price, calculating the corresponding Profit/Surplus and identifying the point of maximum Profit/Surplus the optimum Average Sale Price is determined.