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Sensitivity Analysis – one of the many decision making tools

This week’s challenge was to deliver a 10 minute presentation to my networking group on a useful topic which demonstrates one of the skills I use in the course of  my work.  It really helps your network understand in greater detail the way in which you work.  The difficult part is to make it interesting to the whole audience.

I chose the topic of Sensitivity Analysis which is one of the tools I use when helping businesses through periods of change.  It helps clients focus their minds on the numbers.  It’s all very well having a great idea but if the figures don’t stack up, the impact on the business may be disastrous.  Assigning probabilities to different outcomes helps us consider what might happen to the bottom line if sales fall below expectations or costs exceed estimates.

The video shows the charts I used to help explain my points.

Posted in analysis, decision making, forecasting, probability, profits

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Alterra Business Consulting Ltd
40 Lemsford Village
Lemsford
Welwyn Garden City
Herts AL8 7TR
T: 01707 373138
M: 07947 502760
E: info@alterra-consulting.co.uk

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I would advise all business owners to be passionate about whatever you do, to have a go and not let fear of failure paralyse you into inaction. Take calculated risks, make a few....read more

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