How to Become Financially World Class, Part 2
We know that business is hard, but we believe that the financial aspects should NOT be. World Class Benchmarking is a clear-cut financial tool for that takes the finances of your company from complicated to simple, from scattered to focused, and from individual to team.
Questions I wanted to answer for my own business
- How do you increase the value of your business?
- What is most important for your business…high profitability or fast growth?
- How can you be sure that what you measure matters most for the value of your business?
Competing forces: Profitability and Growth
Opposite forces can be complementary like in yīnyáng (陰陽). Extremely high Profitability (Yin) reduces growth. Extremely high Growth (Yang) reduces profitability.
It is hard for a business to maintain the opposing forces of profitability and growth at maximum. If both forces are weak the business dies.
World Class Benchmarking measures a combination of profitability and growth which we call “Profitable Growth”. The Profitable Growth score explains how well a company maximizes and balances the two forces.
DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.