Finamcial Management

The analyzing process

Use this analyzing process to determine if it is financially doable to sell the
offerings

• To the various specified market segments


• At the specified prices

The six steps of this analyzing process are:

1. List and describe the various offerings of your business (either the ones that
   you already have on hand or those that you tentatively have chosen.)

There is an example below that demonstrates the
next three steps. (2, 3, and 4)

2. Describe the relationship, if any, between each
   market segment of your business
   
   
   • Describe the part each market segment
     plays in the business
   
   
   • Identify the relative importance of each
     market segment of your business
   
   
   
   


3. State the volume contribution of each market segment versus the time spent
   and expenses incurred


4. State the profit contribution of each market segment versus the time spent
   and expenses incurred


5. Show a Break-even analysis (BEP) of each market segment
   (See Break-even Point Analysis below)


6. Draw conclusions about your offering mix and your market segments

No two businesses are the same. In addition, the relationship between business
segments is often constantly changing.