The Seven Metrics Every Business Owner Must Track

Running a business can feel like driving a car in the dark. You know the direction you’re heading, but without a clear dashboard, it’s hard to judge your speed, fuel level, or whether you’ve taken a wrong turn. Most business owners aren’t short on ambition or effort, they’re short on clarity and visibility. And when you can’t see what’s happening, decisions feel heavier, financial stress rises, and the business starts to run you instead of the other way around.

The good news is that you can gain control back by tracking the right things. Once you know which numbers matter and why, you can make decisions quickly, spot problems early, and sleep better at night.

1. Cash Flow

You can survive for a short while without profit. You can’t survive without cash.

Cash flow is the most important indicator of business health because it shows your ability to meet payment obligations including staff, suppliers, tax, debt, and yourself. The trap many owners fall into is looking only at their bank balance. That number is a snapshot of a point in time, not a story.

What to track:

• Cash in vs cash out each month

• Cash runway (how many months you can operate with current cash levels)

• Cash requirements for the next 13 weeks

• ATO or supplier payment plans

• Timing differences (when cash actually arrives vs when sales occur)

Example:
A business we worked with had strong revenue months but kept running into cash stress. Once we showed them how to track cash in vs cash out, we saw they were collecting invoices up to 45–60 days late while paying suppliers within 14 days. The cash timing was misaligned. We introduced better collection processes and matched payment terms to cash inflows, and their runway increased from six weeks to four months.

2. Revenue Trends

Most business owners know their top-line sales figure. Far fewer know how that revenue breaks down by product, service, client segment, or channel. That’s where the insight lives.

What to track:

• Monthly revenue trends

• Revenue by product or service line

• Recurring vs one-off revenue

• Revenue concentration (how reliant you are on your top customers)

Example:
Recently we talked with a business owner who was celebrating a massive year of growth. But when we pulled the numbers apart, we found the new revenue came from frequent product launches with high cost and low margins. Growth was exciting, but it wasn’t sustainable. Tracking revenue by category revealed which product lines were profitable and which were dragging the business backwards.

3. Gross Profit Margin

Your gross profit margin tells you whether your pricing covers your direct costs and leaves enough room for the rest of your business to function. It’s one of the most overlooked metrics, especially in service-based companies where time is the main cost.

What to track:

• Gross profit margin overall and by product/service

• Cost of delivery (labour, materials, contractors, freight, etc.)

• Pricing vs actual effort required

A healthy margin gives you options. A weak margin forces you into constant hustle.

Example:
A consulting firm once believed they were highly profitable because their top-line revenue was strong. When we analysed their delivery data, we discovered that senior staff were spending double the allocated time on projects to meet scope. Their real gross margin was half of what they thought. Once they tightened scope, adjusted pricing, and reallocated tasks, profit rose without increasing workload.

4. Operating Expenses

Most businesses don’t overspend dramatically in one big area. Instead, they leak money in lots of small ways. Tracking operating expenses gives you clarity on what’s essential, what’s strategic, and what no longer serves you.

What to track:

• Monthly operating expenses

• Fixed vs variable costs

• Annual subscriptions and renewals

• Changes in spend over time

We worked with a business owner who told us, “I’ve cut all the costs I can.” When we reviewed their expenses, there were still outdated subscriptions, duplicate tools, and underutilised software. Not because they were careless but because they were too busy and had no ability to way to easily identify this.

5. Accounts Receivable and Accounts Payable

How quickly you get paid and how strategically you pay others can make or break your cash position.

What to track:

• Days Sales Outstanding (how long customers take to pay you)

• Aged receivables

• Aged payables

• Any payment plans or upcoming large obligations

A business we worked with consistently struggled to pay wages on time, despite strong sales. The problem wasn’t revenue, it was customers taking over 2 months to pay. They tightened their invoicing cycle, added direct debit options, and improved follow-up. Their average days outstanding dropped to under 30 days. The stress lifted almost overnight.

6. Pipeline and Future Work

If you’ve ever experienced the feast-or-famine cycle, you’re not alone. It happens when owners don’t track their pipeline.

What to track:

• Leads and where they come from

• Proposal status and conversion rates

• Forecasted revenue for the next 3–6 months

• Capacity vs demand

When you can see what’s coming, you can plan hiring, investment, marketing, and cash decisions with confidence.

7. Owner Pay

Most business owners pay themselves last, inconsistently, or not at all. Tracking your own pay is a direct measure of how well the business model is working.

What to track:

• Regularity of payments

• Amount paid vs what you should be earning

• Whether pay is sustainable based on profit and cash flow

If you’re not being paid reliably, something in the model needs adjusting.

A Simple Weekly Routine

It’s easy to get started, you just need a rhythm.

A practical approach that many business owners use is a 30-minute weekly review that covers:

• Cash balance and inflows/outflows

• Revenue for the month

• Key expenses

• Outstanding invoices

• Pipeline status

• Any financial risks or decisions for the week ahead

Most business owners report that after two to three weeks, they start feeling more in control than they have in years.

The goal isn’t to track everything. It’s to track what matters.

When you have a clear view of your cash, revenue, margins, expenses, and pipeline, you stop reacting and start leading. You make decisions faster. Opportunities become easier to spot. Problems become easier to solve. And the daily uncertainty that weighs so heavily on many business owners starts to lift.