Being aware of how healthy we are is key to staying healthy. So is true for businesses.
Understanding how fit a business is & how to keep it fit is of interest to business leaders & several other stakeholders in the business world like creditors & investors. The only question is, is this information easy to find?
For the sake of example, let’s consider investment ecosystem, where assessing business health or fitness is fundamental. Suppose you are evaluating the opportunity to invest in a particular business, and for simplicity, let’s also assume this business is public.
In this case, you would typically look at a number of metrics simultaneously just to be able to make a better or informed investment decision. Those metrics include but are not limited to Price-to-Earnings, Earnings per Share, Return on Assets / Equity, Free Cash Flow, Debt-to-Equity etc.
The list might get longer & your assessment might get overly complicated depending on the nature of investment, investor profile, business age & industry, and size of investment.
In case of early stage start-up investing, on the other hand, where most of such metrics are missing, you would alternatively be evaluating the value proposal, story, projections, and so on.
The truth is, no matter how many different metrics you check or what the depth of information you evaluate is, a considerable amount of uncertainty & risk associated is still going to be involved in your decision.
The underlying reasons for this uncertainty include mainly-financial orientation of the metrics available, and the lack of accurate information.
“The value of accurate - reliable information is immense, as it is something we look for during investment decisions to ensure we achieve the desired return on investment within an acceptable time window. Highly accurate information, though, is often attained through highly sophisticated models & analysis. Thanks to FITNESS Score ™, we now have the highest level of sophistication in assessing business fitness, and at the same time, can get this in the simplest form one can think of…”
Dr. M. Can Arslan
Founding Partner, M. Can Arslan & Company
Co-founder & Chief of Development (CoD), minicore analytics
FITNESS Score ™ factors in not only all the financials that are typically considered in assessing a business, but also all the rest of the information related to the business from end-to-end, including organization, objectives, non-financial metrics, processes, value proposal, management style, and even the vision, to name a few. In other words, there is no other metric or set of metrics that are capable of offering such a holistic view of a business like the FITNESS Score ™.
FITNESS Score ™ tells you how fit a business is & what to do to keep it in good shape. The good news is, FITNESS Score ™ can be calculated for any business, no matter what its type, age, location, size or industry is. And even better news is, it can be generated in one single session.
All in all, if you need to assess or monitor overall fitness of a business,
FITNESS Score ™ is probably what you will ever want have with you. But just to remind, this is not investment advice…
Visit mehmetcanarslan.com/fitness-score for further information on FITNESS Score ™.
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Disclaimer: All investment strategies and investments involve risk of loss. Nothing contained in this article and website including the products / services offered (e.g. FITNESS Score ™) should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. Please refer to mehmetcanarslan.com/legal-notice for the complete version of our Disclaimer.