Using business and economic analysis helps prepare your company for future growth and productivity. Conducting economic and market analysis of your company offers higher return on investment (ROI). All businesses, whether manufacturing, industrial, retail, financial or technology, need plans and direction to propel themselves into profit and sustainability.
Economic financial analysis helps management decide which strategic plan or business decision will result in lower costs and higher returns. Business analysis is not an exact science, but it is still a wiser alternative than rushing into a new business strategy or decision without planning ahead.
- Conduct economic analysis to evaluate risk factors, sales forecasts and regional and national markets.
- Consult a strategic planner to set goals for your company’s growth and provide strategic scenarios over the next several years.
- Hire a business analyst to develop synergy between management, technology and production to effectively implement the company’s goals.
Apply economic analysis tools before new investments or constructionBefore growing your business or considering new construction, consult an economic analysis company to help guide your way. These companies perform a cost-benefit analysis, which helps identify the projects that are more lucrative to implement and those that are better off rejected based on projected income verses expenditure associated with a proposed project. In addition, economic impact analysis can determine the effects of construction projects on the local economy and environment. Economic impact analysis can also provide documentation that can be presented to legislatures and the public.
Bureau of Economic Analysis. To learn more about economic impact analysis, visit the Economic Development Research and Training Center at Penn State. Reviewing the Introduction to Economic Analysis is a good way to learn more.
Consult a business analyst for advice on improving company performanceA business strategist will conduct an enterprise analysis to determine your company's strengths and weaknesses, provide advice on products and services, strengthen brand awareness, recommend management changes, improve human resources, offer ideas on organizational policy, direct corporate vision and update technology tools.
Conduct a US economic analysis before expandingBefore launching a new product in the US, conduct a market analysis to identify the potential audience and its reception to the product. Perform a regional economic analysis to explore the current market, study its buying trends and preferences and examine the potential for new customers on a sustainable basis. A US business analysis of the market will help define exactly who will be buying your product and how often, determine if the market is saturated and develop an advertising strategy.
- Use economic base analysis to determine if the state of the local economy is stable enough to sustain your new business or new store locations.
- Don't be "married" to your business plan if situations a few years down the line change. Be flexible and innovative!
- Stay current! Gauge the condition of the US economy and its effect on the global marketplace.