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

125: Scaling Your Business with Partnerships & Affiliates

B2B marketing can often be hit or miss. And determining and getting access to your target market can also be difficult. The best way to find and access that target market is to align yourself with companies who already have relationships with those people. They can introduce you to that market directly using their relationship, trust and team. Our goal is for business owners to be able to more effectively leverage partnerships and affiliates in their sales and marketing efforts. In this episode, we’ll be joined by BELAY Sr. Acquisitions Manager, Ashlee Webb. She will chat with us about how to build and scale your business using partnerships and affiliates.

124 Bonus: How Your VA Can Help With Social Media

In this Bonus Next Step, BELAY Solutions Consultant Theresa Summerlin breaks down the pros and cons of hiring a virtual assistant to help run your social media, versus hiring a dedicated social media manager.

124: How to Tackle the Social Media Problem in Your Business

There’s a major difference between recognizing that social media is important and having the knowledge and skills you need to use it effectively. If you’re struggling to find the time to devote to social media, or you want to take your strategy to the next level, it might be time to hire a social media manager. In this episode, BELAY VP of Marketing Amy Appleton talks with Solutions Consultant Theresa Summerlin about the different ways that hiring a social media expert can help your business’ marketing, sales, and customer service. Theresa also shares some practical tips for leaders who are managing their own accounts and discusses a few key signs that it might be time to start outsourcing this piece of your business.