Whether exploring new market opportunities or scaling operations with technology like enterprise resource planning (ERP), businesses often face the challenge of determining which options will drive growth. Without a clear framework, it’s easy to over-commit resources to projects with minimal impact or overlook profitable ventures. This is where cost-benefit analysis offers clarity.
Cost-benefit analysis is vital for making informed decisions, but many companies struggle to balance the potential rewards against the risks and costs of major initiatives.
By offering a structured framework for assessing the costs and benefits of decisions, CBA empowers you to make data-driven, strategic choices. Learn how to perform a cost-benefit analysis—with examples—and its pros and cons so you can use this method to your advantage.
Jump to:
- The meaning of cost-benefit analysis
- Perform a cost-benefit analysis in 5 steps
- Pros and cons of cost-benefit analysis
- Essential tools and techniques for doing a cost-benefit analysis
- Cost-benefit analysis examples and use cases
- Best practices for an effective cost-benefit analysis
- Boosting productivity and profitability for growing businesses
- Cost-benefit analysis FAQ