Making rational decisions about new services
Keywords:management financials, revenue streams, value proposition, affinity diagramming, partial budget, new services, breakeven
This presentation offers a methodology and tools to evaluate the profitability and potential financial impact of possible new products and services to your practice. We discuss how to set up your current financial statements to facilitate understanding the impact and three important criteria when considering possible new services. You will be exposed to developing management financials and profitability of your current and potential revenue streams as well as developing a value proposition with the input of your various constituencies, your own practical experience, and any research you might have. Additionally, you will learn about the use of partial budgets to evaluate the marginal benefit of potential new services, to analyze sensitivities and set reasonable expectations for new products or services, to integrate and track progress into your planning.