Key Financial Metrics and business drivers are critical to creating a sustainable and scalable enterprise

Drivers such as Costs, Efficiencies & Revenue generation/Top line growth are critical drivers that all entrepreneurs and executives have to constantly measure and optimize. For example in retail some metrics;

a. Costs ~ SG&A
b. Efficiencies ~ Inventory turnover or Inventory Holding
c. Revenue Growth ~ Top-line

This becomes interesting when new entrepreneurs or businesses take these drivers and business or financial metrics with new business models that either are an evolution in the industry or disruptive.

Now with BOP markets these drivers and metrics are critical to creating sustainable and scaleable organizations and businesses. Some examples that have leveraged these drivers and have been very successful are;

www.scojofoundation.org/docs/GBN_BOP_Paper.pdf

So what is the base that everyone’s looking at? Decreasing Costs, Increasing Efficiencies and Increasing Revenues. This is a good template to leverage and can be applied across any industry.

ROCE/ROI/ROE/SVA/EVA and its impact on multiples from EBIT to Sales. Key is to stay simple and stay focussed.