Whether you are starting a new business, adding a new product, or just seeking to improve your company's bottom line, it's important to perform basic profitability analysis on a regular basis. First, estimate your expenses and calculate your breakeven point — the sales level at which your revenue minus expenses equals zero. Next, analyze several scenarios with different price levels and other factors to find out how they affect your breakeven point and your potential net profit.

You can use the same principles of profit analysis to help you decide whether to pursue certain customers or projects. Gathering the facts and calculating potential results can help you make better decisions and reach your goals.

Use the following links to start your profit analysis and maximize the potential of your business.

• Project small-business profits (Article)
  Learn how you can estimate the impact of factors such as fixed costs, price, and volume on your net profit.
• Detailed expense estimates (Template)
  Use this template to create a detailed expense projection in Excel.
• Streamlined expense estimates (Template)
  Use this template to create a streamlined expense projection in Excel.
• Customer profitability analysis (Template)
  Use this Excel template to analyze potential profit from a customer or customer segment.