Tip #78: Are the profit margins as good as they can be?

Tip 78 - Profit Margins

Are the profit margins as good as they can be?


Buyers for businesses usually are looking for companies with a track record of strong profit margins. But oftentimes, the business owner has gone too long avoiding raising prices or has been complacent in finding a better deal from vendors. If a company’s costs are too high and/or prices too low, the business owner must take every step possible to make the profit margins attractive to potential buyers. Low profit margins will negatively affect the valuation and sale price of a business.