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Are your systems impacting the profitability of your business?

40:20:20

Businesses exist to produce a Return on Investment (ROI) that is satisfying for shareholders - one that allows the business to provide a healthy 'return for effort and risk'.

So, ideally the leaders within the business should be clear on the financial targets for the business, and be measuring and monitoring progress to those targets. This will enable any 'systems slippage' to be identified and corrected as the business grows.

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Action: Reflect on the above material, and ponder the following questions:

1. What is an appropriate ratio for your industry?
2. What is an appropriate ratio for your business (considering the industry and market conditions)?
3. What is your current business ratio?