A profitability analysis measures the costs of an ongoing business function or proposed project against anticipated revenues from that same source. The process provides business owners and managers with detailed information about operational efficiency, sales achievement, marketing results, and other key factors. Companies employ the data from these evaluations to determine whether to eliminate programs, take on new business opportunities, or make adjustments to existing plans and processes.
In addition, a profitability analysis allows a company to improve its response to customer expectations. For instance, managed service providers undertake profitability analysis projects to determine mechanisms needed to streamline help desk services; corrections in this area save time for both the customer and the provider while fostering client confidence and satisfaction. A profitability analysis also facilitates the identification of customers that routinely cost the company money with excessive demand for attention, repairs, or payment delays.
About Maarten de Jeu: An expert in the analysis of business operations, Maarten de Jeu currently works as a consultant specializing in Strategy & Corporate Development for SVM Business Advisory, based in Chicago, and serves as a trusted advisor to his employers and consulting clients. He possesses significant experience in the creation of strategies that optimize corporate resources while purging unnecessary costs. A graduate of Leiden University, where he earned a Master of Arts, he also completed a Master of Business Administration at Oxford University.
In addition, a profitability analysis allows a company to improve its response to customer expectations. For instance, managed service providers undertake profitability analysis projects to determine mechanisms needed to streamline help desk services; corrections in this area save time for both the customer and the provider while fostering client confidence and satisfaction. A profitability analysis also facilitates the identification of customers that routinely cost the company money with excessive demand for attention, repairs, or payment delays.
About Maarten de Jeu: An expert in the analysis of business operations, Maarten de Jeu currently works as a consultant specializing in Strategy & Corporate Development for SVM Business Advisory, based in Chicago, and serves as a trusted advisor to his employers and consulting clients. He possesses significant experience in the creation of strategies that optimize corporate resources while purging unnecessary costs. A graduate of Leiden University, where he earned a Master of Arts, he also completed a Master of Business Administration at Oxford University.