When this work is useful
Sales increase without a corresponding improvement in profit. Broad reports leave the causes unclear. Management debates individual expenses without a shared view of how the business earns its margin.
Business Model & Profitability Analysis
Find the business reasons behind the numbers
Your business can be busy, growing, and still struggle to earn a satisfactory profit. The question is which parts of the operating model produce that outcome.
Discuss your business ↗What we examine
We group activities by how they create value and earn revenue, then examine their resource requirements, delivery obligations, and relationships. That creates a more useful basis for evaluating profitability than treating every activity as if it follows the same economic model.
What the work can produce
An explanation of the revenue and operating models within the business; a view of the activities driving or weakening profitability; and prioritized issues for further evaluation or improvement. The agreed scope determines the depth and format of the analysis.
Different models. Different economics.
Commission-based business
Examine how commissions are earned, the activity required to secure and support transactions, and how compensation and servicing obligations affect the resulting contribution.
Own-product business
Examine the linked economics of development, production coordination, inventory, logistics, and delivery. An attractive selling margin may conceal costs and complexity elsewhere in that chain.
Product commercialization
Examine purchasing, inventory, selling, fulfillment, and after-sales obligations for products developed by another company. The value created and resources required differ from an own-product model.
Start with the issue you want to solve
Describe what is happening in the business and where the current information leaves questions unanswered.
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