Business comparison

By Fisco Pro Team

4 mins read

Distinguishing between potential business investments is not just a service; it's an art.

Our innovative Business Comparison Tool elevates this art to a science, utilizing the detailed insights from our Business Analysis tool to compare multiple businesses head-to-head.

Here’s how this tool can redefine your advisory strategy, focusing on finding the best investment through comparative Return on Investment (ROI) analysis.

The Basis of Comparison

Leveraging the inputs from our Business Analysis tool, this comparison tool requires:

  • Business Name: For each business under review.
  • One-Time Investment: Initial capital for assets like buildings, machinery, licenses, IPR, and stocks.
  • Average 3-Month Working Capital: Investment in inventory and operations.
  • Predicted Annual Incomes: All forms of revenue expected from each business.

Comparing for Excellence

Once data for multiple businesses are entered, our tool conducts a comprehensive comparison:

Metrics of Success:

  • Total Working Capital: A quick comparison of how much capital each business requires to operate.
  • Net Profit: Comparing profitability across businesses to see which one turns a better profit margin.
  • ROI in Percent: The star metric of our tool, this comparison focuses on which business offers the highest return on the initial investment, highlighting the most efficient use of capital.

Summary

The Business Comparison Tool transforms the art of distinguishing between potential business investments into a data-driven science. By leveraging insights from the Business Analysis Tool, it enables financial advisors to compare multiple businesses head-to-head, focusing on Return on Investment (ROI) and other key metrics. Here's how it works:

  • Inputs for Comparison: Business name, one-time investment, average 3-month working capital, and predicted annual incomes for each business.
  • Key Metrics Analyzed:
    • Total Working Capital: Compares operational liquidity needs.
    • Net Profit: Highlights profitability across businesses.
    • ROI (%): Identifies the business with the highest return on initial investment, showcasing capital efficiency.

This tool empowers advisors to objectively evaluate investment opportunities, providing clients with clear, actionable insights to make informed decisions. Elevate your advisory strategy and help clients invest smarter—use the Business Comparison Tool today!