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Revenue and Cost Model
A model that shows revenue sources, cost items and what determines profit.
Problem it solves
A business that does not know where its profit is made and where it is lost, or at what volume it breaks even.
Scope
- Structuring revenue sources
- Classifying costs as fixed or variable
- The break-even point
- Sensitivity of results to the main variables
- A spreadsheet the client updates on their own
Outputs
- Revenue and cost model in a spreadsheet
- Break-even analysis
- Sensitivity analysis
- Assumptions register
Not included
- Accounting, bookkeeping and audit
- tax planning
- specialized financial analysis.
Typical duration
3 to 6 weeks
Durations are planning estimates for an average engagement. They vary with the size of the business and how fast information is provided, and they are not a promise to a client. The duration of each engagement is set in the written proposal you receive.
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Next step
Start with our free diagnostic for a first, structured reading of your sales and customers, or contact us for a free first consultation with no commitment.