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If you are called upon to make financial decisions you may find it difficult sometimes to confidently choose the best proposal. Using cost benefit analysis can help. When dealing with decisions, using cost benefit techniques, it is very important to follow proven principles.The health of your business, company and your reputation depend on these principles. Once you apply these techniques you will quickly be able to compare and rank projects with confidence knowing that governments and large companies and large corporations use these proven principles.Cost benefit analysis weighs the total expected costs and compares to the total expected benefits of one or more actions.Simply put, compare “what it will cost me with how much it will bring back.” The outcome of cost benefit analysis is a cost benefit ratio that is used to compare and rank competing investment options. Here are the benefits:1.   You can compare your competing projects quickly and very close to accuracy –saving your time. 2.   You can quickly determine whether a project may viable or not – quickly cutting out the unviable options thereby saving time and effort. As I mentioned above, cost benefit analysis compares cost and benefits of competing projects and produce a score (benefit cost ratio) which if less than 1 shows that the project is unviable (all other things being equal). This can quickly weed out the projects that will not make it, saving time and effort fro you and others charged with considering these projects and making final recommendation.            3.   Because this method is a definite win application, both your competitors will notice you and clients on how impact your operations. You gradually gain increased recognition if you use the technique correctly. Since this powerful, proven technique can save discussion time provide more accuracy and confidence, it will be seen as a real improvement. I repeat it if you champion cost benefit analysis at inception, you will be noticed and gain recognition.      4.     Learning this very marketable technique will provide you with more option in your future. There are many ways you can apply these techniques. You could train others the skill –both internal and also to external clients.You could be the assessor of the methodology prior to projects being reviewed by your counterparts and other entrepreneurs.This will save them time and frustration if they know someone knowledgeable has already worked on the mathematics and reviewed assumptions for reasonableness. You may wish to apply fort part time jobs in other companies.    5.      You can apply these skills across small to large projects –making you more versatile. The cost benefit principles can be used in projects as small as PC replacement to underground assets that form part of large multi- million capital works programs.

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