Topic

Reading Numbers

The operator's literacy in the language their business actually speaks.

You do not need to be an accountant to run a good business, but you do need to be fluent in a handful of numbers. Operators who cannot read their own financials are guessing.

The Operating Lens

How exceptional operators approach reading numbers.

Questions worth sitting with

01What are the five numbers I look at every week?
02Do I understand the difference between profit, cash, and margin, in the terms of my business?
03Which of my costs are fixed and which are variable, honestly?
04What is my break-even, and how did it change since last year?

Signals you may be here

01You wait for your accountant to tell you how the business is doing.
02You cannot say gross margin off the top of your head.
03You are surprised by your tax bill every year.
04You confuse cash on hand with profit.

Practical starting points

01Print your P&L, balance sheet, and cash flow statement. Read them slowly with your accountant.
02Pick five numbers you commit to looking at every Monday.
03Learn one financial concept a month, in the terms of your own company.