Do you really know your numbers?
How often do you answer the question, “How’s business?” with “Really busy!”
It sounds positive, right? Feels like a badge of honour. But here’s the harsh truth: being busy doesn’t mean you’re making money.
In fact, being too busy – without understanding your numbers – might be the very thing killing your profit.
The Busyness Illusion
Don’t get me wrong, being busy is important. However, too many business owners use it as a safety blanket. It makes them feel productive, important, even successful. They feel the busier they are, the more money they’re making.
But let me ask you what your response would be if you were asked, “How’s your profit?”
The sad reality is most business owners don’t have a clue – at least not until their accountant hands them the annual financials. And by then, it’s far too late to course correct.
Being ‘flat out’ isn’t a strategy. It’s an adrenaline shot – and a dangerous one at that. The real question is: “What’s all that work actually producing?”
Chaos Isn’t a Business Strategy
Unfortunately, many business owners wear chaos like a badge of honour. Constant firefighting, phone always ringing, inbox overflowing – they confuse stress with success. But there’s a cost to that chaos:
- Missed opportunities
- Inaccurate pricing
- Margin leaks
- Time you’ll never get back
Every day you don’t know your numbers is a day you’re losing money.
Simply put, being “too busy” to step back and assess what is really happening in your business is costing you big. Lots of small to medium business owners are bleeding opportunity costs daily by staying stuck in the grind instead of focusing on strategy. When you know your numbers and make each day count, you gain a massive edge over competitors who don’t.
The $50 Wake-Up Call: What Not Knowing Your Numbers Is Really Costing You
When I meet with new businesses, one of the first things I ask is: “What does it cost for you to do that job or build that product or deliver that service?”
Although the majority say they know, once we start working through it with them, it becomes very clear they don’t. Key parts are missing, margins are guessed. And when I say:
“For the next two weeks, leave an extra $50 on the counter at every shop you visit.”
I’m met with looks of horror! You obviously wouldn’t throw away money for no reason, so why do it daily in your own business?
The reality is that most businesses are losing more than that every single day because they don’t know their numbers – their costings are off and nobody has ever told them.
Bad Advice (or No Advice at All)
If you’re not getting this advice, at a minimum, and being challenged by your advisor to understand your numbers, then you’re not getting the advice you deserve. A good advisor should be asking:
- Are you pricing accurately?
- Do you know your break-even point?
- Are you making margin or just turnover?
- Are you setting clear short-term and long-term goals, and budgeting effectively to meet them?
If they’re not, it’s time to find someone who will.
Growth Without Profit is a Fantasy: Know Your Numbers to Scale Smart
The story is common: “We’re growing! We’ve hired more staff, got a bigger space, more clients!”
But then comes the second part: “We’re not making any money.”
This isn’t a mystery – it’s what happens when you scale chaos. Growth without control is a business disaster waiting to happen.
We’ve all heard of companies failing because they grew too fast. It’s not just about scaling operations – it’s about scaling profit
Measure What Matters: How to Know the Right Numbers in Business
Privacy and pride have pushed us to track the wrong metrics. What we’ve been telling each other is what we’ve started telling ourselves and how we’re measuring our business performance and the benchmarks we’ve put in place.
We talk about size, scale and volumes as a measure of success instead of profit or Return on Investment (ROI).
Does someone who produces more, or has a bigger factory, or has more trucks or more clients necessarily make more money than their competitors – I can categorically tell you NO.
The Smartest Numbers Win
It’s time to stop measuring busy. Start measuring smart:
- Know your margins
- Track profit per job
- Understand your cashflow
- Invest time in costings
The BUSIEST business with the SMARTEST numbers will always win.
Don’t let busyness be your downfall. Know your numbers. Own your profit. And stop leaving $50 on the table every day.
Not Sure Where to Start?
We can help you identify the key things you need to know about your business – and start measuring them – so you can shift from just being busy to achieving profitable success.
Understanding your business’s numbers and performance is essential, but it doesn’t have to be overwhelming. Whether it’s tracking margins, setting accurate pricing, or getting clear on cash flow, we’re here to guide you through the process step by step.
Here’s how we can help:
- Identify Key Metrics: Together, we’ll uncover the most important numbers for your business – margins, job cost, cash flow, and more – that you need to track for smarter decision-making.
- Create a Plan for Regular Monitoring: We’ll help you set up systems to track your business’s financial health so you’re always in the know – without having to scramble at the last minute.
- Actionable Insights: With the right metrics in place, we’ll show you how to take actionable steps to improve profitability, streamline operations, and scale your business strategically.
- Expert Advice: Whether you need help with pricing, costings, or setting up financial benchmarks, we’ll provide the expertise you need to ensure that you’re not just busy, but profitable.
Start moving from chaos to control. Let us help you take the first step toward building a smarter, more profitable business. Get In Touch with our team today to get started!
Published May 2025
Adrian Misiano is a Partner at Matthews Steer and has been a trusted accountant and advisor to family businesses for many years. With a track record for driving business improvement, clients value his ability to simplify the complications of business and provide effective advice.