The Seven Numbers Every Business Owner Should Know
Being busy is not the same as building a healthy business. Many business owners can tell you how full their calendars are, how many sales they made last month, or how much money is sitting in the bank. But ask whether their business is becoming more profitable, and the answer isn’t always clear. Activity can create the appearance of success. Understanding the numbers reveals what’s actually happening. A sustainable business requires more than hard work. It requires clarity. Here are seven numbers every business owner should understand. Revenue How much are you selling each month? More importantly, is that number growing, declining, or standing still? Revenue shows activity, but not necessarily success. Gross Margin After delivering your product or service, how much money remains? Strong sales mean little if the cost of delivering them consumes most of the revenue. Profit After all expenses are paid, what have you actually earned?
