What is a good net profit? And why your business needs a daily ticker

Determining a good net profit percentage is essential for any business owner. The most frequently asked figure is often a comforting number like 10%, 15% or 20%. However, the reality is far from comforting. The IMF's 2026 World Economic Outlook indicates global headline inflation at 4.7%, which every serious business must operate within. Ignoring this global reality leads to a decline in profitability.

To ensure profitability, a business's net profit target should be at least three times the global inflation rate. With 4.7% inflation, this translates to a minimum net profit of 14% to 15%. This is not a stretch goal, but a floor that ensures the business is not just surviving, but scaling and building genuine wealth.

Operating at 3 times inflation allows the business to cover inflation itself, create real reinvestment capacity, and generate genuine wealth. In numbers, a business generating 10mn riyals annually would need to average 40,000 riyals of sales per day to hit a 15% net profit target. This daily target, akin to a daily sales ticker, should be monitored daily, like a trader monitoring a stock price.

Any variance from the target must be openly discussed and addressed promptly. If you cannot answer your daily sales target and whether you hit it, your net profit is merely a wish, not a plan.