Scaling a business is exciting, but growth without financial clarity can lead to cash flow problems, unnecessary debt, and unpredictable expenses. If you want to scale your business successfully, these key numbers will help you stay in control and make informed decisions.
1. Revenue vs. Profit
More sales don’t always mean more profit. Track both to ensure you’re not growing at the expense of your bottom line.
2. Cash Flow
Scaling requires investment. Know exactly what’s coming in and going out so you have enough liquidity to support your growth.
3. Profit Margins
Low margins can make scaling unsustainable. Ensure your pricing and expenses allow for healthy profits at any growth stage.
4. Recurring Revenue
The more predictable your income, the easier it is to plan and invest in your business with confidence.
5. Customer Acquisition Cost (CAC) vs. Lifetime Value (LTV)
Understanding how much you spend to acquire a customer versus how much they bring in over time helps ensure your growth is profitable.
6. Debt-to-Income Ratio
If you’re using financing to scale, ensure your debt is manageable and doesn’t drain your cash flow.
7. Tax Obligations
More revenue often means higher taxes. Stay ahead with proper planning so you’re not caught off guard.
Scaling isn’t just about growing revenue; it’s about growing smart. If you need help organizing your finances and making sense of these key numbers, we’re here to help!