Accomplish More.
Juggle Less.
Everything you need to transform your work.
Create your business scorecard using our

Business Budget Template

Visibility is key, and having a system in place will help you evaluate how things are going and clearly see whether or not you’re winning.

Download Now

About This Episode

Many small business owners, especially in their companies’ early stages, are experts on the product or service they provide, not the financial numbers. Even experienced business owners may find themselves so busy making sure everything gets done that they rarely have time to sit down and dig into the numbers. We want leaders like you to understand the financial numbers in their business so you can make better decisions and improve the health of your finances.

In this episode, we’ll share the top three financial metrics that matter most in your business and how to use them to lead your business. Our guide will be BELAY’s financial guru Lisa Zeeveld, the current COO and former CFO of BELAY.

1. You can’t manage what you don’t measure.

Finances are often a source of misery when they remain a mystery. You must start tracking the three essential financial metrics — revenue, cost of goods, and net profit. These numbers give you the information needed to decide what you sell, how much you sell it for, and what you pay to produce it. Empower yourself to be the best leader you can be by tracking the numbers, so they’re available to be referenced when you need them.

2. Set the line.

Decide to run a profitable business. Leverage industry research and professional contacts to determine the types of margin you can make on what you sell — the percentage of revenue kept by the organization after paying for the product or service to be produced. Then, set the portion you want as profit. The percentage left will be allocated to operating costs. After you do that, stand firm on those percentages to ensure you run a financially healthy business.

3. Review the numbers monthly.

Great sports coaches would never lead their teams well if they only checked the score at the end of the game, but that’s what many business leaders do. Running a business and leading a team requires you to modify plans, try new tactics, acquire more talent, etc. These types of adjustments demand you know how things are during the game, so you have an opportunity to influence the outcome. We recommend you review the top three metrics at least once a month via a profit and loss statement and profit and loss forecast. Also, a weekly cash flow projection would be ideal as it would prevent you from seeing any surprises at the end of the month.

One Next Step Podcast on White Smartphone

Recommended For You

110: Career Changes: How To Navigate What’s Next

In this episode, Jeff shares some of the key lessons from his new book, “What to Do Next.” He breaks down a few key signs that you might be ready for a change, explains why it’s so important to create optimal options, and shares some strategies for building and accessing your personal network. Whether you’re a leader who’s currently in the midst of a transition, or you want to prepare yourself to make a change in the future, this episode is full of valuable insight!

109: 4 Strategies for Effective Communication

Communication is one of the most important parts of a leader’s job, and yet 66% of leaders report feeling uncomfortable communicating with their employees. In this episode, BELAY Vice President of Operations Matt Seaton unpacks four necessities for communicating effectively with your team. He also shares practical tips for implementing those strategies and explains how leaders of remote and hybrid teams can build connections even without physical proximity.

108: A New Small-Business Blueprint

Every entrepreneur’s journey is unique, but there are a few key characteristics that can increase your chances of success at whatever business you choose to build. In this episode, Monica Allen talks through some of those characteristics and shares the biggest lessons she’s learned throughout more than twenty years of entrepreneurship. Monica is the co-founder and COO of Zeus’ Closet, owner of Monica Allen Interiors, and host of the “Become Your Own Boss” podcast. She discusses some of the common issues facing today’s entrepreneurs, shares a few of her favorite resources, and explains why she’s focused on calibration instead of balance.