Business value – Sustainable profitability
Profitability is a key component in valuing your business. You need to understand your key profit drivers and KPIs and those relevant to your industry. Have you considered benchmarking your business against others in your industry? Have you undertaken a profitability sensitivity (What If) analysis?
Your business needs to serve you, not the other way around. You need to ensure an adequate return for your efforts in addition to an appropriate return on investment. Continually challenge yourself and re-evaluate; am I maximising the returns from my business? Does the current level of profitability match my expectations?