I want to tell you something I don’t say often enough.
For years, I avoided my numbers.
Not completely – I had an accountant, and a partner comfortable with financials, and I knew roughly where things stood.
I could tell you if it was a good month or a bad one.
But I would avoid sitting down and really understanding where the money was coming from, which offers were actually profitable, and what the next twelve months looked like financially.
I kept all of that at arms length. Because…
I’m not a numbers person.
I have other people who can help with that.
Plus, the business is growing, so things must be fine!
But, that is NOT the attitude a leader takes. We can’t avoid things because they are uncomfortable, or sweep them under the rug because they bring up uncertainty and fear and doubt.
As soon as I decided to get comfortable with my numbers, I felt my confidence go up. Just by the act of doing. Now, I will never be a bookkeeper. I will never be the one who knows the spreadsheet shortcuts.
And that’s okay.
But now, I have enough knowledge to make better business decisions. I’m able to invest more in the offers that are producing steady profit. I’m able to see the long-term picture of where my business is heading.
It turns out, clarity is one of the most useful tools available to us. And financial clarity is something I believe every single business owner needs to have some level of comfortability with.
So today, let’s talk numbers.
Why do so many of us avoid our numbers?
I’ve spoken to literally thousands of women business owners over the years, most of them highly successful, highly capable, and who operate at a significant scale.
And despite the level of success, there is this pattern around finances that is shockingly consistent:
Avoidance.
The accounts don’t get looked at, the report pile up, and conversations with the accountant get postponed.
And underneath it, almost always, is ANXIETY.
45% of Australian business owners say managing their business finances is their number one source of anxiety. And I believe it – I see it.
Anxiety is what underlies the avoidance.
Because, what if I look and things aren’t as good as I hoped?
What if I look and I don’t understand what I’m seeing, and look dumb?
What if I look and realise something needs to change… but I’m not ready for that kind of change?
These questions ARE uncomfortable. They are easier to ignore.
So if we avoid the numbers, we also get to avoid the anxiety and fear and discomfort.
But as you likely already know, the discomfort of not knowing is almost always more expensive than facing the discomfort of knowing.
So, what do you actually need to know, financially?
You don’t need to know every number in your business. I think that’s where a lot of business owners get stuck — because if you have to go get a finance degree in order to understand this stuff, it’s never going to happen.
You don’t have to know everything. The details can be firmly in the hands of your accountant or bookkeeper.
But there are a handful of things you, as the business owner, as the leader, need to be across.
Here’s the breakdown:
Revenue. Not just annual, but the trend over time. Is your revenue growing? Holding steady? Declining? Pay attention to the direction of revenue, rather than just the big number at the top.
Profit. What is actually left after everything is paid? Because that is the number that equals freedom.
Cash Flow. I hear women struggling with cash flow constantly. What’s coming in, what’s going out, and when. Knowing your cash flow is what prevents you from having cash crisis because timing is off, or one invoice is late.
Profit by Offer. Which of your products or services are actually making you money? Which ones are keeping you busy… but not earning their keep? This metric is what you can base your campaigns around, what you put to market, and what you invest more of your time into.
Customer Acquisition Cost. If you’re running any kind of marketing – ads, launches, campaigns… what is it actually costing you to get a client? And does that stack up against what that client is worth to you over time?
That’s it. Five things. If you can answer those confidently at any given moment, you are in better financial shape than most business owners I know.
Financial management seems overly-complex. But it all boils down to this question:
Where is my money coming from – and what is it costing me to earn it?
That’s the one core question underneath everything else.
The clarity that comes from being able to answer that question sets up your ability to confidently lead your business forward.
That clarity defines what your focus will be this next year.
That clarity gives you the ability to sort out what is working, and what isn’t.
You stop making decisions based off of gut feel alone (which is also important, and should be listened to!).
But you actually get the evidence to back that gut feeling. So you can double down on offers that are profitable, retire those that aren’t serving you, and conserve your energy to the things that deserve it.
And that, is financial leadership.
Ready to create your 12-month profit plan?
If you’ve been keeping your numbers at arm’s length and you know it, the best thing you can do is this:
Create a DEDICATED time to sit down, and address it.
Will it be uncomfortable? Yes.
Will you feel overwhelmed at times? Yep.
Will you google questions that make you feel just a little bit embarrassed? Probably.
But at the end of that session — you WILL feel that clarity I was talking about.
And, if you don’t want to swing it by yourself and want some guidance, we have a 2-day workshop coming up that will walk you through all the steps.
The Build Your 12-Month Profit Plan Workshop will be two half-days (13 & 14 May), where you’ll map out your numbers, rank your most profitable offers, and walk away with a costed 12-month plan for the new financial year.
👉 You can save your spot here! (You can use the code PROFITPLAN to get $400 off your ticket.)
And, you’ll get the opportunity to get real advice, rather than Googling all of those questions in secret 😉
But whether you join us or not, I hope that this acts as a reminder to just look.
Just look, despite the discomfort, at your finances — and start getting comfortable with them.
Remember you don’t have to know everything, you just need to lead from clarity over avoidance.
Not knowing your numbers is scarier than knowing them.
Here’s to doing what you love,
Suzi
P.S. I’d love to know your thoughts in the comments. Why do you think so many of us avoid talking about money?
