05D. Profitability KPIs: Net Worth

Episode 5 of Building Your Multi-Million Dollar Practice focuses on digging into KPIs that measure Profitability and how they impact your clients and your advisory services. We already went over a few of these, so now we’re going to focus on Revenue Per Employee, Cost of Goods Margin, Expense Margin, Net Worth, and Gross Margin. The Net Worth KPI is fairly easy to define, but what is important to understand is that this shows a lot about the state of a business at any given point. Advisers also understand that although Net Worth can play a factor in the Valuation of the company, it is not necessarily directly correlated.  The Formula: (Total Assets – Total Liabilities)