EP 84 – The 3 Numbers Every Business Owner Needs to Know

Today, Kelsey joins me to chat about metrics, specifically the three key numbers every business owner should know and track.   There are tons of KPIs (key performance indicators) to gauge your business's performance, but sometimes it's best to keep it simple. The three KPIs you absolutely need to know are gross profit, net profit, and average monthly cash output. Listen as we break down these basic metrics and explain why it's important to understand them.  In this episode, Kelsey and I also discuss:  How to keep your metrics simple and why keeping it simple can be helpful | 1:45  The three numbers you need to know for your business | 4:14  What is gross profit, how to calculate and track it, and what it tells you | 4:43  What is net profit, how to track it, and why it's important | 12:10  What is the average monthly cash output, how to calculate it, and what it can tell you | 16:34  How often you should look at your metrics and analyze the numbers | 21:10  Common mistakes business owners make when looking at their numbers | 23:47  Things mentioned in the episode:  Downloadable Worksheet | https://kickstartaccountinginc.com/3numbers   Episode 68 – Why You Need a Budget | https://kickstartaccountinginc.com/ep-68-why-you-need-a-budget/   Episode 79 – Forget Goals! Create Intentions and Measure Your Success in these Definitive Ways throughout the Year | https://kickstartaccountinginc.com/ep-79-how-to-get-motivated-this-new-year-without-setting-goals/     Need help understanding your numbers to track metrics? Join our Finance Framework Program and be a part of a community for business owners who want to take control of their financials! Enroll today!   The Finance Framework | https://www.kickstartaccountinginc.com/framework     Connect with Danielle:   Website | https://www.kickstartaccountinginc.net/   Facebook | https://www.facebook.com/kickstartaccountinginc/   Instagram | https://www.instagram.com/kickstartaccounting    Twitter | https://twitter.com/KickstartAcct      Book your FREE Discovery call: https://kickstartaccountinginc.com/book-a-call/   Test your Financial Health: https://kickstartaccountinginc.com/checkmyfinancialhealth/   Learn how to pay yourself as a CEO – https://www.kickstartaccountinginc.com/getpaid