A major part of running and growing a successful business is planned action and goal-setting. Cost-benefit analysis is a systematic, technical approach to determining the best course of action to help you achieve your goals. Used in conjunction with facilities reviews, cost-benefit analysis is immensely beneficial to businesses of all sizes and at every phase of their development, particularly when applied to facilities procurement.
How can a cost-benefit analysis help you?
A cost-benefit analysis can identify the potential risks and gains of a business venture. It can alsobe used for evaluating the cost benefit of a service provider. The main reason for conducting such an analysis is to determine the payback period for a specific project.
Why conduct a cost-benefit analysis?
A cost-benefit analysis is used to evaluate the total anticipated cost of a project or service compared to the total expected benefits in order to determine whether the proposed implementation is worthwhile for a company or project team.
If the results of this comparative evaluation method suggest that the overall benefits associated with a proposed action outweigh the incurred costs, then a business or project manager will most likely choose to follow through with the implementation.