F&P; — FINANCE & PROFITABILITY Scott Gillespie F&P; — FINANCE & PROFITABILITY Scott Gillespie

Five Financial Ratios Every Small Business Owner Should Track

You log into your banking portal every single morning. You stare at the balance on the screen. If the number looks large, you relax. You might even authorize a new equipment purchase. If the number looks small, your chest tightens. You immediately email your sales team and demand more revenue. You operate your entire company based on the amount of cash currently sitting in checking.

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F&P; — FINANCE & PROFITABILITY Scott Gillespie F&P; — FINANCE & PROFITABILITY Scott Gillespie

How to Build a Business That Runs Without the Owner Running It

You check your bank account every morning. If the balance looks high, you feel successful. If the balance looks low, you panic and demand your team push for more sales. This habit represents a fatal strategic error. Your bank account acts as a lagging indicator. It tells you what happened in the past, but it provides absolutely zero context for the future of your company. Operating a business based on the daily cash balance keeps you trapped in a cycle of constant anxiety. You cannot run a scalable, ten-million-dollar enterprise by guessing.

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