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Ratios to Track In Your Business

Understanding the numbers in your company is critically important, not just so you understand how profitable you are, but also on how each part of your business contributes to that profitability. Getting granular on your direct and input costs will lead to better decision making, and quite frankly will add value you your business over the long run.

If you are hoping (expecting) to sell your business as part of your exit plan, then understanding what drives profitability in your business will help you position it for a successful exit. Every business owner should be considering what their next steps will be, and having an exit-ready business should be the goal. With so many business owners expecting to exit in the next 5 years, you hade better be ready if you expect to sell.

Ratios to Track - Jul 2022
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