41 / 100
ing decisions based on gut feelings and
guesstimates. While your gut might
sometimes be right, it cannot be used as
a stand-alone tool. Decisions must be
supplemented with a system of facts
and formulas. A simple set of financial
metrics can help business owners
approach every decision from an edu-
cated and proactive standpoint.
Following are the common metrics our
company looks at when determining
VER THE PAST 10 YEARS
an abundant
number of tools for small businesses have been
introduced that put running a business at the
fingertips of anyone with an idea and ambition. From being
able to accept remote payments with a smartphone to creating
an ad on social media, entrepreneurs are finding ways to build
and grow their businesses with relative ease.
The downside is that many business owners who have turned a passion or
hobby into a business have little or no accounting or business background. As a
result, these owners tend to avoid all contact with “the numbers” and end up mak-
MANAGEMENT
O
KNOW YOUR NUMBERS
SIMPLE, SMART METRICS FOR SMALL-BUSINESS OWNERS
BY JAMIE WATSON
GROW
JULY 2015 •
PPB
• 39