What is the Profit Gap?

The Profit Gap refers specifically to the difference between the owner's current business profit and the profit achieved by Best-In-Class companies within the same industry. By focusing on this comparison, business owners can identify areas for improvement and potential strategies to enhance their profitability. This analysis helps owners understand not only where they stand in terms of profitability relative to high-performing peers but also provides a target for growth and development.

Measuring the Profit Gap encourages business owners to assess their operational efficiencies, market positioning, and overall business strategies in relation to those who consistently perform at a higher level. This insight is critical for effective exit planning, as it identifies opportunities to maximize the value of the business before a sale or transition.