Amazing work mastering financial statements! Now let's create your business health dashboard - five simple numbers that tell you everything you need to know about your business's survival and growth.
Think of this as your business's vital signs monitor.
Engagement Message
Want to venture a guess of one vital sign for any business?
Your financial statements show what happened in the past, but a health dashboard shows what's happening right now and predicts your future.
It's like the difference between a medical exam and real-time heart monitoring during exercise.
Engagement Message
Why might today's key numbers guide better decisions than last month's report?
Your dashboard needs just five numbers updated monthly: Revenue, Profit Margin, Customer Acquisition Cost, Customer Lifetime Value, and Cash Runway.
These five metrics work for any business - from a local bakery to a software company to a consulting firm.
Engagement Message
Which of these five metrics sounds most intimidating to you right now?
Revenue is simple: total money coming in each month. This shows if you're growing, shrinking, or staying flat.
Track it monthly to spot trends. A coffee shop might see $8,000 in January, $9,200 in February, showing 15% growth.
Engagement Message
What pattern would you want to see in your monthly revenue numbers?
Profit Margin shows what percentage of revenue you keep as profit. Calculate it as: (Revenue - All Expenses) ÷ Revenue × 100.
If your coffee shop makes $9,200 revenue and has $8,000 in expenses, your profit margin is 13%. That's healthy!
Engagement Message
Is a 50% profit margin realistic for most businesses? Why or why not?
