Know your numbers to grow business. It’s one of the most common pieces of advice you’ll hear as a business owner. Yet too often, it’s brushed aside in favour of busyness, instinct, or avoiding spreadsheets altogether.
If you’re like many business owners I work with across Sydney, you’re not afraid of the hard stuff. You’re on the tools, managing your team, handling customers. But the financials? They’re either a guessing game or something that gets attention only when things go south.
But here’s the truth: you can’t grow what you don’t measure. You can’t scale, hire, or plan for tomorrow without knowing where you stand today.
Let’s break down why it’s crucial to know your numbers to grow business and how you can get on top of them, even if spreadsheets make your eyes glaze over.
What does it mean to “know your numbers”?
It doesn’t mean turning into an accountant. It means being able to confidently answer questions like:
- Are we profitable and by how much?
- Where is the money actually going?
- What’s our monthly break-even point?
- Which jobs or services are most profitable?
- How many leads do we need to hit our sales target?
- Can we afford to hire right now?
When you know your numbers to grow business, you’re leading with data, not gut feel. Knowing your numbers to grow business means having your finger on the pulse of your operation.
The cost of not knowing your numbers
When you don’t know your numbers to grow business, you leave yourself wide open to costly mistakes:
- Underquoting on projects
- Overspending without noticing
- Hiring too early or too late
- Chasing the wrong type of client
- Thinking you’re profitable until the accountant says otherwise
One client once told me, “I thought we were smashing it until I looked at the numbers we were busy, but bleeding money.” That comment stuck with me. Busy doesn’t equal profitable. Only the numbers tell the truth.
When you know your numbers to grow business, it becomes easier to course correct before damage is done.
Core numbers every business owner should know
You don’t need a finance degree or to track 100 KPIs. Just start with the essentials and focus on what will help you know your numbers to grow business:
1. Revenue
- Total income from all services or sales
- Monthly and year-to-date
- Compared to previous periods
2. Gross Profit Margin
- Revenue minus direct costs (like materials and labour)
- Helps you see if you’re pricing correctly
3. Net Profit
- What’s left after all expenses overheads, wages, rent
- This is the real bottom line
4. Break-even Point
- How much revenue you need just to cover your costs
- Crucial for setting meaningful targets
5. Cash Flow
- The inflow and outflow of money each month
- Profit is great, but cash pays the bills
6. Debtors and Aged Receivables
- Who owes you money, and for how long
- Delayed payments often choke your cash flow
How to start tracking your numbers
Here’s how to build the habit even if you’re not a “numbers person.”
Step 1: Work with your bookkeeper
Don’t just drop receipts off and hope for the best. Sit down once a month. Go through the reports. Ask questions. When you know your numbers to grow business, your bookkeeper becomes a partner, not just a processor.
Step 2: Build a simple dashboard
Use a spreadsheet or software like Xero, QuickBooks or Fathom. Track:
- Monthly revenue and net profit
- Aged receivables
- Direct and overhead expenses
Keep it simple. Clarity over complexity helps you consistently know your numbers to grow business.
Step 3: Create a financial rhythm
Make finance part of your regular routine:
- Weekly: Quick cash check
- Monthly: Review your profit and loss
- Quarterly: Compare against your goals
Bring your leadership team into the conversation. Visibility creates ownership and supports your ability to know your numbers to grow business.
Real-world example: Inner West service business
One Sydney service business I coached had a solid reputation and consistent work but always seemed strapped for cash.
Together, we rolled out a simple 3-step system:
- Weekly cash flow check
- Monthly break-even tracking
- Job costing every major project
In six months:
- Net profit rose by 19%
- They cut unprofitable services
- Made confident hiring decisions
They didn’t work more hours. They just made better calls, all because they started to know their numbers to grow business.
“But I’m not a numbers person…”
That’s a common roadblock. And it’s fine you don’t need to love numbers. You just need to respect them.
Think about the dashboard in your car. You don’t need to be a mechanic, but you do need to know when you’re low on fuel or overheating.
Same goes here. You don’t have to do the bookkeeping, but you do have to understand what the reports mean. You don’t need to build spreadsheets from scratch, but you do have to read them. You don’t have to be a CFO but you do need to lead like a CEO who knows their numbers to grow business.
The payoff: confidence, control, and smarter growth
When you know your numbers to grow business, everything becomes clearer:
- You quote more accurately
- You sleep easier at night
- You know when to push and when to pause
- You see issues before they become crises
- You grow with purpose instead of panic
Ultimately, numbers give you control and control gives you freedom. And when you know your numbers to grow business, that freedom is well earned.
Want help getting on top of your numbers?
At Business Coach Mark, I help business owners gain confidence with their numbers not by turning them into accountants, but by making the financial side clear, practical, and empowering.
With the right tools, habits, and guidance, we’ll turn your numbers into one of your strongest assets.
→ Book an Initial Chat with Mark and get clarity on what’s really driving your business.
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Don’t wait until the next financial crisis hits. Let’s get ahead of it starting today.
