What is coaching leadership and how do you teach it?

Posted on July 23, 2024November 7, 2025 by stagiaire

What is coaching leadership and how do you teach it?

Coaching leadership can be an interesting approach for your organisation. This style not only helps employees reach their potential, but also creates a positive and productive work environment. Find out exactly what coaching leadership is and how you can learn to apply it.

What is coaching leadership?

Coaching leadership is a style in which the leader assumes the role of coach. Instead of just directing and controlling, a coaching leader helps employees develop themselves and improve their skills. This is done by listening, asking questions and giving constructive feedback. The aim is to give employees more ownership over their work and motivate them to be their best selves.

How can you lead in a coaching capacity? Roadmap

1. Create a safe environment

A safe working environment is essential for coaching leadership. Employees should feel free to ask questions, make mistakes and learn. Make sure you encourage open communication and actively listen to the whole team.

2. Set clear goals

It is important to set clear and achievable goals with your team. Use the SMART principle (Specific, Measurable, Acceptable, Realistic, Time-bound) to make sure everyone knows what is expected of them.

3. Give constructive feedback

Feedback is a powerful tool in coaching leadership. Give feedback regularly and make sure it is constructive. Focus on concrete areas for improvement and avoid personal attacks. Also ask for feedback in order to grow yourself.

4. Encourage self-reflection

Encourage all employees to reflect on their performance and where they can improve. This can be done by asking targeted questions such as "What went well?" and "What can be improved?"

5. Offer support and resources

As a coaching leader, your job is to support the whole team and provide the necessary resources to achieve their goals. This could be training, guidance or providing tools and information.

6. Encourage growth and development

Make sure employees are given opportunities to grow and develop within their roles. Also make them aware of this so that they realise the opportunities available to them within your organisation.

Why is coaching leadership important?

Coaching leadership offers many benefits, both for employees, for you and for the entire organisation. It promotes a culture of continuous learning and improvement, increases employee motivation and commitment, and leads to better performance and results. Moreover, it contributes to a positive working atmosphere and higher satisfaction.

Advice from an experienced mentor

Learning coaching leadership can be challenging, but you don't have to do it alone. As an experienced manager, I know better than anyone the pitfalls, how to lead effectively with coaching, manage small and large teams, integrate coaching into your leadership style, grow in delegation and deal effectively with employees. I can provide you with the tools and methods you can build on for life. Book a no-obligation consultation today with me and take the first step towards a growing and efficient organisation.

Kurt Vervloet

Kurt Vervloet is a business coach, blogger and speaker. Since 2017, he has been coaching businesses around the world, ranging from solo entrepreneurs, SME companies to executive management teams at large organisations. His clients choose to work with him because of my proven, no-nonsense approach to optimising and scaling businesses. By achieving great results with his clients, he has already been rewarded with several Awards.

Calculating EBITDA - how do you do it?

Posted on June 4, 2024November 7, 2025 by stagiaire

Calculating EBITDA - how do you do it?

What is EBITDA?

Besides EBIT, the term EBITDA is often used when analysing business results. This stands for "Earnings Before Interest, Taxes, Depreciation, and Amortisation". It adds depreciation and amortisation to the EBIT calculation, giving a broader picture of operating profitability.

How can you calculate EBITDA?

Formula:

EBITDA = EBIT + Depreciation + Amortisation

Formula according to the Commission on Accounting Standards (CBN):

Add depreciation and amortisation:

This includes both tangible and intangible fixed assets, as well as any extraordinary depreciation.
- - Depreciation and amortisation of formation expenses, intangible assets and property, plant and equipment (item 630)
- - Write-downs on inventories (item 631/4)
- - Exceptional depreciation and amortisation (item 660)
Correct for reversal of depreciation and amortisation: These are previously taken write-offs that are reversed.
- - Write-back of depreciation and impairment losses (item 760)
Sample calculation:
- Company turnover: €500,000
- Operating expenses: €300,000
- Depreciation and amortisation: €50,000
Then this is to say:

EBITDA = €200,000 (EBIT) + €50,000 (depreciation and amortisation) = €250,000

The company thus has an EBITDA of €250,000.

Important to know too: For smaller companies using a simplified accounting scheme, it can be challenging to EBIT to be calculated precisely due to lack of detailed posts.

What is a healthy EBITDA?

A healthy EBITDA margin varies widely by industry, but in general, a margin of 15% or higher is often seen as very positive.

The key in assessing a 'healthy' EBITDA is to observe the capital structure and fixed asset investments that characterise your business. For companies that rely heavily on physical assets, a higher EBITDA may be necessary to offset greater depreciation and amortisation.

Again, it is important to analyse EBITDA regularly. A rising trend in EBITDA may indicate an improvement in your business operations and the overall financial health of your company.

Why is EBITDA important?

Besides analysing the financial health of your company, EBITDA is also often used as a benchmark in business acquisitions. As an experienced business coach I help companies improve their EBITDA and optimise business processes. Feel free to contact me for an initial discussion to discover how I can support you in increasing your profitability and successfully executing acquisitions.

Kurt Vervloet

Calculating EBIT - essential for your bottom line

Posted on April 23, 2024November 7, 2025 by stagiaire

Calculating EBIT - essential for your bottom line

Understanding how to calculate EBIT is essential for every entrepreneur and investor as they can provide valuable insights on the financial health and profitability of your business.

What is EBIT?

EBIT or "Earnings Before Interest and Taxes", is a measure that reflects your company's operating profit before interest and taxes are deducted. It provides insight into operational performance by looking only at revenues and operating expenses related to a company's core business.

Calculating EBIT - how do you do it?

Calculating EBIT provides insights into a company's operating profit by considering only revenues and operating expenses, excluding interest and taxes.

Formula:

EBIT = Revenue (net) - Operating expenses

Formula according to the guidelines of the Accounting Standards Commission (CBN) in Belgium:

Start with the pre-tax profit (or loss). This is your starting point.

Deduct income not directly related to core activities: this includes income from financial fixed and current assets.

-Income from financial fixed assets (code 750)
-Proceeds from current assets (code 751)
-Other financial income (code 752/9)

Then add all costs related to debt: including debt and impairment charges that are not operational.

+ Cost of debt (code 650)
+ Write-downs on current assets (code 651)
+ Other financial charges (code 652/9)

Example:

Let's say your company generates sales of €500,000 and has operating expenses (including cost of goods sold, but excluding interest and taxes) of €300,000.

EBIT = €500,000 - €300,000 = €200,000

That is, the company has an operating profit of €200,000 before interest and taxes are deducted.

What does EBIT say about a company's financial health?

Strong EBIT indicates good operational efficiency and profitability, excluding the impact of interest and taxes. It is an indication that a company is performing well in its core business.

How much EBIT is healthy?

Determining a 'healthy' EBIT depends very much on the sector in which your company operates and the stage your business is in. In general, a positive EBIT is seen as a sign of operational strength, as it shows that your company is able to generate profits before the impact of interest and taxes.

A healthy EBIT margin varies, but as a rule of thumb, a margin of 10% or higher is often considered strong, while a margin between 5% and 10% may be considered adequate. However, in some industries, even a lower margin is acceptable, given the nature of operating expenses and fixed asset investments.

It is important to stress that evaluating your EBIT should also be done in the context of your operating results over several years to identify trends. Consistent growth in your EBIT suggests an improvement in your company's operational efficiency and profitability.

Kurt Vervloet

SMART goals examples

Posted on March 19, 2024November 7, 2025 by stagiaire

SMART goals examples

The importance of setting SMART goals, a crucial component for achieving business success, cannot be overemphasised. These goals provide clarity and focus, essential in a business environment where time and resources are limited. By setting goals SMART - a methodology that stands for Specific, Measurable, Acceptable, Realistic and Time-bound - teams can focus their efforts more effectively and significantly improve business results. This approach, known as the SMART method, transforms vague ambitions into concrete plans with clear steps and deadlines, significantly increasing the chances of success.

How to effectively set SMART objectives?

Formulating SMART objectives effectively starts with clearly defining exactly what you want to achieve, your goal. This goal must be specific, with clear criteria for how success can be made measurable, achievable and acceptable within the organisation, realistic given current resources and circumstances, and must be achieved within a specific timeframe. This approach ensures that the goals are both ambitious and achievable, with strong support and clearly defined, measurable targets.

Common pitfalls when setting goals

When setting goals, entrepreneurs often experience pitfalls such as not making their goals specific enough, setting immeasurable targets or setting goals without a clear deadline. These mistakes can lead to confusion, lack of direction and demotivation within teams.

5 examples of smart goals and how to integrate this into your business strategy and culture.

Let us now go deeper into the application of SMART objectives in a business context by using specific examples. This helps to understand the nuances of how well versus poorly formulated objectives can lead to better business results.

Example 1: Coca-Cola's water efficiency

Well formulated SMART target: Improve water efficiency by 20% by 2022 compared to the base year.

Specifically: Coca-Cola targets a 20% improvement in water efficiency.
Measurable: By using water consumption reports and efficiency analyses.
Acceptable: Challenging but achievable, with support from both management and the operations team.
Realistic: Given technological advances.
Time-bound: A clear deadline in 2022.

Poorly formulated goal: "Make our water use better."

This goal lacks specificity, measurability, acceptance within the organisation, a realistic quantitative target and a time-bound component.

Example 2: Technology company accelerates development cycle

Well formulated SMART goal: Accelerate the product development cycle with 20% within one year.

3. Human dynamics

Your team is your most important asset, but also a source of constant challenges. From leadership development to talent retention, managing people requires constant attention.

Specific and Measurable: By comparing the time from concept to market launch.
Acceptable: Support within the organisation.
Realistic: Feasible with current resources and technology.
Time-bound: Within a year.

Poorly formulated goal: "Make our development processes faster."

This goal lacks specificity, measurability, acceptability, realism without benchmarks and a clear time frame.

Example 3: McDonald's sustainability initiatives

Well-formulated SMART target: Achieve a 36% reduction in absolute emissions by 2030.

Specific and Measurable: Focus on significant carbon footprint reduction.
Acceptable: Management and employee support.
Realistic: Investment in sustainable technologies.
Time-bound: Deadline of 2030.

Poorly formulated goal: "Reduce our impact on the environment."

This goal is too vague, not specific, not measurable without quantitative targets, unclear whether it is acceptable within the company, lacks realism without specific actions and lacks a time-bound component.

Example 4: Sustainability objectives

A manufacturing-oriented multinational integrated SMART goals into their business strategy by setting specific, measurable, acceptable, realistic and time-bound targets for reducing their carbon footprint. They set the ambitious goal of reducing total greenhouse gas emissions by 30% within five years. They would achieve this by investing in renewable energy sources and improving energy efficiency in their factories. This SMART goal not only became a strategic focal point but also transformed into a central part of their brand identity and corporate culture, creating a culture shift that involved employees at all levels in sustainability initiatives. This example of smart-goal setting illustrates how strategic goals can help achieve key business objectives and strengthen corporate culture around shared values.

Example 5: Culture change through training and development

A service company deployed SMART objectives to promote a culture of continuous improvement and personal development. With the specific goal of having 100% of their employees participate in at least two professional development workshops or trainings within two years, this objective was measurable, acceptable, realistic and time-bound. The target was designed not only to improve employees' skills, but also to increase employee satisfaction and make the company more competitive. By creating a supportive environment and offering various learning paths, the company not only achieved its set goals but also encouraged collaboration and innovation within the team. This highlights the importance of making goals specific and how setting SMART goals can help achieve cultural change and achieve strategic business objectives.

Integration within your company?

By carefully setting goals SMART and considering frequently asked questions about SMART goals, entrepreneurs and teams can increase their chances of success. Want to learn more about this strategic approach within your business? Contact me and we can proceed to this.

Kurt Vervloet

Top 5 best marketing books

Posted on December 15, 2023November 7, 2025 by stagiaire

Top 5 best marketing books

As a business owner, keeping up with the latest marketing strategies and insights is crucial for your business to grow and prosper. But with the plethora of marketing books out there, it can be challenging to decide which ones are worth reading. I often get asked which marketing book I can recommend. Below you can find my personal top five.

"They Ask You Answer" by Marcus Sheridon

In "The Ask You Answer", Marcus Sheridon teaches you how to gain your customers' trust by answering their questions and becoming an authority in your industry. The book emphasises the importance of transparency and sharing valuable information to attract your audience. This is essential for entrepreneurs striving to build a strong online presence and strengthen their brand image.

"$100M Leads: How to Get Strangers To Want To Buy Your Stuff" by Alex Hormozi

Alex Hormozi's "$100M Leads" is a must-read for entrepreneurs looking for effective ways to convince strangers to buy their products or services. The book offers insights and strategies for generating leads and converting potential customers into paying customers, allowing your business to grow exponentially.

"Blue ocean strategy: creative strategy for new, competition-free markets" by W. Chan Kim

"Blue Ocean Strategy" by W. Chan Kim introduces the concept of creating new, untapped markets instead of competing in saturated markets. This approach can be extremely valuable for entrepreneurs looking for innovative ways to grow their business by discovering and seizing new opportunities.

"Selling the Invisible: A Field Guide to Modern Marketing" by Harry Beckwith

In "Selling the Invisible", Harry Beckwith shares valuable insights into modern marketing techniques, especially for service businesses. The book emphasises the importance of understanding and communicating the value your services provide. This is a valuable resource for entrepreneurs who want to better understand how to effectively market intangible services.

"Purple Cow: Transform Your Business by Being Remarkable" by Seth Godin

Seth Godin's "Purple Cow" emphasises the importance of standing out in the market by being remarkable. This book encourages entrepreneurs to add unique and eye-catching elements to their products or services to stand out from the competition. For anyone looking to grow their business, "Purple Cow" offers valuable insights on creating an unforgettable brand.

These top five marketing books offer a wealth of knowledge and strategies for entrepreneurs striving for growth and success in their businesses.

Kurt Vervloet

What is strategic thinking?

Posted on October 20, 2023November 7, 2025 by stagiaire

What is strategic thinking?

Strategic thinking is an important skill that is increasingly valued in the business world. It involves the ability to think in a strategic and forward-looking way, taking into account the future and the goals you want to achieve. Strategic thinking is not only suitable for leadership, but can also be useful for individuals at different levels within an organisation.

What does strategic thinking entail?

Definition of strategic thinking

Strategic thinking can be described as the ability to think strategically and purposefully. It involves being able to look beyond the present moment and think about the future. It includes setting goals, observing trends and developments, analysing internal and external factors and making strategic choices.

Importance of strategic thinking

The importance of strategic thinking cannot be overemphasised. It enables organisations and individuals to be better prepared for the future and adapt to changes in the market. Strategic thinking helps plan and make long-term decisions, increasing the chances of success. When you take time for this, you are better able to deal with challenges.

What are the benefits?

Strategic thinking enables you to identify and seize opportunities, analyse risks, make higher-level decisions and develop effective strategies to achieve your goals. It also helps you to be flexible and adapt to changing circumstances. In addition, strategic thinking also stimulates creativity, as you are constantly looking for new and innovative ways to achieve your goals.

Characteristics of strategic thinking

Flexibility

Flexibility is a key attribute of strategic thinking. It allows you to adapt to changing circumstances and seize new opportunities. Flexibility means being open to new ideas and willing to adjust your strategy when necessary.

Creativity

Creativity is also an important attribute of strategic thinking. It allows you to think out-of-the-box and come up with new and innovative solutions. Creativity helps you develop unique strategies that set you apart from the competition.

Long-term vision

Having a long-term vision is crucial in strategic thinking. It means looking beyond the present and thinking about the future goals you want to achieve. A long-term vision allows you to develop a strategy aimed at sustainable success and growth.

How can you develop strategic thinking skills?

Observing trends and developments

One way to develop strategic thinking is to observe trends and developments in the market. It is important to keep abreast of changes and new opportunities that arise. By observing trends and developments, you can anticipate changes and respond proactively.

Asking the right questions

Asking the right questions is a key skill in strategic thinking. By thinking critically and asking the right questions, you can understand the underlying factors and drivers behind certain situations and trends. This helps you gain in-depth insights and make better strategic decisions.

Identifying internal and external factors

Identifying internal and external factors affecting your organisation is also important in strategic thinking. By conducting a thorough analysis, you can identify potential opportunities and threats and adjust your strategy accordingly. Understanding both the internal and external environment is essential for effective strategic thinking.

Action plan needed?

Strategic thinking is not something you do alone. In business, it is often essential to prioritise and look at all factors from multiple perspectives. Contact me so we can brainstorm together.

Kurt Vervloet

Top 5 podcasts for entrepreneurs

Posted on October 2, 2023November 7, 2025 by stagiaire

Top 5 podcasts for entrepreneurs

As an experienced business coach, I often receive the question, "what podcasts for entrepreneurs can you recommend?". We have the advantage that there is a lot of information available right now. You have podcasts for startups, general podcasts about business, inspirational podcasts with stories by and for entrepreneurs, more specific podcasts about e.g. ground-breaking business models, and so on.

Everyone knows the Tim Ferriss show, a fun podcast for young entrepreneurs. But what are the must-listen podcasts? Below you can find a list of my favourite podcasts for both start-ups and experienced entrepreneurs.

"Business Growth Mindset Podcast"

This podcast provides valuable insights and strategies for developing a growth mindset, which is essential for successfully growing their business. The podcast offers practical and inspiring stories and interviews with successful entrepreneurs and experts who share valuable lessons on overcoming challenges, identifying opportunities and driving business growth.

"Jim Rohn Talks"

Jim Rohn is an inspiring and influential speaker and author on personal development and business success. In his talks, he shares valuable insights, strategies and principles that can help entrepreneurs develop their entrepreneurial skills and achieve their goals.

"The Cardone Zone"

Listening to the podcast "The Cardone Zone" is interesting because it gives entrepreneurs access to the powerful and bold business insights of Grant Cardone, a successful entrepreneur and real estate investor. The podcast offers valuable strategies, motivation and advice to help entrepreneurs grow and achieve success in their business ventures.

"Inspiration Speeches by Billionaires"

This podcast offers the chance to learn from the wisdom and experiences of successful billionaires, inspiring them and providing valuable insights for their own entrepreneurial journey. This podcast offers inspiring speeches and stories that can help entrepreneurs develop their vision, motivation and business strategies. From each episode, you can learn several lessons

"Belgian entrepreneurs podcast"

This podcast offers experiences and insights from successful entrepreneurs in Belgium, giving them relevant knowledge and inspiration for their own business activities in the Belgian context. This podcast offers valuable stories and practical tips specifically focused on the challenges and opportunities faced by entrepreneurs in Belgium.

When do you listen best?

I always recommend listening to a few episodes before deciding whether the podcast is for you. It's also good to make listening to podcasts a regular routine: for example, you can put on an episode every day on your way home. Some entrepreneurs also invariably put on the same podcast about entrepreneurship before going into a sales call: so you can also use podcasts as a tool to take yourself to the next level.

Kurt Vervloet

How do I organise a good Team Consultation?

Posted on September 15, 2023November 7, 2025 by stagiaire

How do I organise a good Team Consultation?

Level 10 Meeting: The Game-Changer for Effective Team Consultation

Have you ever heard of a Level 10 Meeting?

If you are not already familiar with it, this could be the missing piece of the puzzle for productive and purposeful team meetings.

What is a Level 10 Meeting?

The concept of a Level 10 Meeting comes from the book "Traction" by Gino Wickman. The name "Level 10" comes from striving for a perfect meeting that would score a 10/10 on efficiency and productivity.

Why is it so Powerful?

The Level 10 Meeting is designed to minimise distractions, ensure consistent follow-up and keep teams focused on the most crucial issues.

Ideal Agenda Items:

1. Check-in (5 min)

A quick round-the-table for updates.

2. Scoreboard review (5 min)

Review how the team is doing against their KPIs.

3. Rock review (5 min)

Evaluate progress on quarterly targets.

4. To-do list (5 min)

Checking the previous week's to-do list.

5. Issues list (60 min)

Identify and discuss problems; find solutions.

6. Closure (5 min)

Conclude and identify action points for the coming week.

10 FAQ on the Level 10 Meeting:

1) Where does the term "Level 10" come from?

It refers to the goal of a "10/10" perfect meeting in terms of efficiency and effectiveness.

2) How long does such a meeting last?

Exactly 90 minutes.

3) Why only 5 minutes before check-in?

The idea is to get going quickly and discuss key issues effectively.

4) Should every team member be present?

Yes, it promotes consistency and accountability.

5) How often should a Level 10 Meeting be held?

Weekly.

6) What if we cannot solve all the problems in the meeting?

Focus on the biggest problems first and move others to the next meeting.

7) How are these meetings different from standard team meetings?

They are more tightly organised, focused on solutions and avoid distractions.

8) Is it only for big teams?

No, it can be adapted for teams of any size.

9) What if a team member consistently fails to contribute?

This needs to be addressed outside the meeting. A Level 10 Meeting relies on active contribution from everyone.

10) Can the structure of the Level 10 Meeting be changed?

While the framework is specific, it can be adapted based on unique team needs.

Teams around the world have discovered the power of the Level 10 Meeting.
If you are looking for a way to increase the productivity and focus of your team meetings, it is definitely worth considering this format.

Kurt Vervloet

How do you calculate the gross profit margin?

Posted on September 4, 2023April 11, 2025 by stagiaire

How do you calculate the gross profit margin?

Calculating gross profit margin is crucial for companies to understand their profitability. Here's how to do it in clear steps:

What is Gross Margin?

Determine gross profit: Gross profit is calculated by subtracting the cost of goods sold (CDVG) from sales. CDVG includes direct costs of producing or delivering a product or service. This can include costs such as materials, direct labour and manufacturing overhead.

Gross profit = Turnover - Cost of Goods Sold (CDG)

Calculate the gross profit margin: Divide gross profit by sales and then multiply by 100 to express it as a percentage.

Gross profit = (Gross profit / Turnover) * 100

A practical example:

Imagine a company has a turnover of €500,000 and the cost of goods sold (GFCF) is €300,000. To calculate the gross profit margin:

Gross profit = €500,000 - €300,000 = €200,000

Gross profit margin = (€200,000 / €500,000) * 100 = 40%

In this example, the gross profit margin is 40%. This means that the company retains 40% of its sales after deducting the cost of goods sold.

Formula

The formula to calculate gross profit is:

Gross profit = Turnover - Cost of Goods Sold (CDG)

Shows what profit a company makes after deducting direct costs related to production or delivery. Turnover refers to the total income from sales, while PPS includes the direct costs associated with what the company sells.

Practical example of gross profit margin:

A good example of gross profit margin in practice is a retailer. A retailer's profit margin is calculated by reducing turnover by the cost of goods sold, and dividing that result by turnover. The higher this percentage, the more profitable the retailer! This calculation can help retailers see where improvement is possible in their operations or pricing.

Comparing their gross profit margin with competitors in the same industry can also provide valuable insights. By knowing their gross profit margin, retailers can make the right choices to increase their profitability.

In summary, gross profit margin is a crucial measure for retailers. It helps them understand their performance, set targets and ultimately become more profitable. Knowing this margin can make the difference between success and failure in retail.

What is a Good Gross Profit?

An excellent gross profit margin ratio shows the profitability of your business. It is calculated by taking the difference between the selling price and the cost of goods sold (or cost of sales) and then dividing it by the selling price. The resulting figure is presented as a percentage, known as the mark-up.

A higher mark-up indicates a higher gross profit margin, which often indicates good financial health of the company. However, it is important to remember that a healthy gross profit margin does not always guarantee success, as other factors such as overheads and expenses must also be considered.

What constitutes a "good" gross profit margin ratio depends on your industry and is compared to other companies in your field. By understanding industry standards and finding ways to improve them, you can ensure that your business has a healthy gross profit margin ratio.

Why is Gross Profit Margin Important?

As mentioned above, the gross profit margin ratio is important because it helps analyse your company's financial performance. It shows how much revenue your business makes after deducting the cost of goods sold (GFCF). This gives insight into the efficiency of your pricing strategies, which can help you plan for future growth.

A high gross profit margin is beneficial because your business generates more profit than the costs it incurs. By regularly monitoring this ratio, you can ensure that your business remains competitive and profitable.

How to Analyse Gross Profit Margin?

Analysing gross profit margin is crucial to understanding the financial health of your business. It involves looking at net sales and taking into account all costs related to generating those sales, both direct and indirect. To do this effectively, you need to closely monitor your profit margins and compare them with other companies in your industry.

It helps you spot trends and identify areas where you may need to make adjustments. By knowing your gross profit margin, you can better understand your financial health and make informed decisions for the future.

Understanding this measurement helps you make informed decisions about allocating resources to maximise profits. Moreover, it indicates how well your business is performing compared to others in your industry. Knowing your profit margin allows you to know whether you remain competitive or need to make adjustments.

How do you improve gross margin?

Gross margin is essential to assess a company's profitability. It measures the difference between sales and direct production costs. Consider these key strategies to improve your gross margin and overall financial performance:

1. Increase prices

Raising prices is an excellent way to increase your gross margin. It is an effective strategy to make more money in the long run. However, before implementing price changes, evaluate other factors that can also affect your results. Overpricing can hurt your sales and alienate customers. Do your research and find a fair price for you and your customers.

2. Improve efficiency

Improving your efficiency is not always easy, but it is possible. Start by assessing your processes and identify which ones are most inefficient. Make sure you have the right tools to streamline those processes. Automation can also be a great way to reduce inefficiencies. Finally, don't forget to invest in training for your employees.

Gross margin versus Net profit margin versus Operating profit margin

Financial metrics are essential for evaluating a company's performance and overall financial health. Gross margin, net profit margin and operating profit margin are crucial measures of a company's profitability and operational efficiency.

Gross margin

Gross margin is a fundamental measure of a company's ability to generate profit from its core business. It represents the percentage of revenue that exceeds the direct cost of goods or services sold.

Net profit margin

Net profit margin is a more comprehensive measure of a company's profitability as it considers all costs, such as operating expenses, taxes and interest.

Operating Profit Margin

Operating profit margin is essential for assessing a company's operational efficiency and profitability. It focuses exclusively on the operational costs of producing and selling goods or services.

Limitations of gross margin ratio

While the gross margin ratio is useful for understanding how well a company manages its costs, the ratio has some limitations. It measures only one aspect of profitability and does not take into account other operating costs or taxes.

questions

What does a gross margin of 80% mean?

A gross margin of 80% means that after deducting the cost of goods sold from total sales, you make a lot of money. This indicates how efficient your business is in turning investments into net profit.

Is 80% a good gross margin?

It depends on your sector. An excellent gross margin varies from sector to sector, but generally, a gross margin above 80% is considered healthy.

What does a gross margin of 20% mean?

A gross margin of 20% means that from every euro earned, you keep 20 cents and the other 80 cents goes towards covering your costs.

It is important to remember that no financial ratio should be used in isolation when making investment decisions. Each ratio provides only part of the picture and should always be interpreted in conjunction with other information about the company. Therefore, it is essential to use different ratios when making informed investment decisions.

Kurt Vervloet

The Power of Structure in your Business

Posted on September 4, 2023November 7, 2025 by stagiaire

The Power of Structure in your Business

In today's dynamic world, structure is often the secret ingredient behind successful businesses and productive individuals. Whether you are an entrepreneur striving for efficiency or a professional looking to reduce workload, structure is key. In this blog article, we dive deep into the world of structure and offer insightful tips for any question you may have.

1. How do I get more structure in my work?

Prioritise your tasks:

Use tools such as the Eisenhower Matrix to assess the importance and urgency of each task.

Plan ahead:

Start each day with a to-do list and set realistic deadlines.

Minimise distractions:

Create a workplace free of unnecessary interruptions.

Set boundaries:

Ensure clear working hours and take breaks.

Evaluate regularly:

At the end of the week, look back and adjust your strategies where necessary.

2. How do you provide structure in the organisation?

Clear hierarchy:

Make sure every employee knows who they should report to.

Standardise processes:

Implement established procedures for common tasks.

Regular team meetings:

These ensure alignment and clear communication.

Use technology:

Invest in tools that improve workflow and collaboration.

Training and development:

Make sure the team is equipped with the skills needed for their roles.

Discover here the 4 ways to make your business more effective and efficient...:

3. How do you make a business successful?

Success is often the result of clear vision, determination, and a strong organisational structure.

4. What is the structure of a company?

This refers to the way a company is organised, usually defined by its hierarchy, roles and communication channels.

5. What are the 4 corporate structures?

These are the sole proprietorship, general partnership (VOF), private limited company (BV), and public limited company (NV).

6. What is the purpose of structure?

It provides a clear framework for responsibilities, authority, and communication. This leads to efficiency and effectiveness.

7. How do you structure your day?

Start with a routine: Like meditating or taking a morning walk.

Time-blocking: divide your day into blocks dedicated to specific tasks.

Avoid multitasking: Focus on one thing at a time.

Schedule breaks: It improves concentration and well-being.

Evaluate at the end: Reflect on what went well and what can be improved.

8. Why is structure in a company important?

It promotes consistency, predictability and effective results, which is essential for growth and stability.

9. What types of structure are there?

Apart from the corporate structures mentioned above, organisational structures include functional, divisional, matrix and horizontal.

Conclusion:

Structure is not just a buzzword; it is an essential component for achieving business and personal success. By following the tips above and embracing a structured approach, you will set yourself and your organisation on a path of growth and efficiency.