Numbers Don’t Lie (So Be Sure to Know Yours) | NAWBO

If numbers don’t lie and they tell a story (and they do), there’s no time like the present to know your business numbers as we push through the heart of tax season and work to lessen the impacts of an unexpected health crisis. 

In a recent article by Allison Maslin, NAWBO member, past conference speaker and serial entrepreneur, knowing your numbers starts with three things: getting the support you need, focusing on sales and measuring everything:

  1. Get support: All major businesses have advisers who help them plan and execute their business strategies. Your business idea might be unique and brilliant, but without proper guidance, especially when it comes to financials, you could find yourself spending money and spinning your wheels.
  2. Focus on sales: Too many business owners push sales to the end of their business development process. They get stuck on logo development, website building and other items of building a business and delay sales until everything is finished. Let me tell you this: it’s never finished.
  3. Measure everything: What gets measured, gets managed! From the moment you start your business, there are things to measure. Sales, leads, calls, clicks and conversions, views—you name it, every aspect of your business can and probably should be measured. Here are the most important ones to monitor:

    -Revenue: By getting clear on how much money you are generating vs. how much you are spending, you will get a real picture of your operating costs. These numbers can help you tighten up expenses and even get more creative with bringing in revenue.

    -Expenses: How much are you spending? A simple review of your bank and credit card statements will give you the numbers you need.

    -CAC (Sales & Marketing Expenses/# of New Customers): How much does it cost you to get one customer? Common expenses include paid advertising, staff salaries, CRM and marketing automation software licenses, events, sponsorships, customer gifts, social media and website maintenance.

    -LVC (Lifetime Value of the Customer): How much can you expect to earn from one customer? What is the sales cycle after the first purchase? How do you move them through the funnel for future purchases, and how much money will the average customer spend with you in their lifetime? Use this simple formula to calculate this number:
    (Average Value of a Sale) x (Number of Repeat Transactions) x (Average Retention Time in Months or Years for a Typical Customer)

    -Lead List Size: How many prospects are you adding to your funnel each day? Keeping track of the number of fresh leads and aiming to grow them daily will help you streamline your prospecting activities and create more ways for those leads to get into your funnel.

Not feeling confident in your numbers knowledge? You’re not alone. Studies show two-third of Americans couldn’t pass a basic financial literacy test. Other studies show a literacy gap for women, whether it’s because they grew up in households where men controlled the money or because they never received financial education in school or the workplace.

Don’t let it discourage you. Rather, let it inspire you to take control of your own financial literacy. Enroll in a course (online for now), read books, scour websites and listen to podcasts about it to level the playing field. Look into financial management technology tools that can help you be more proficient. You can do it!

—Jeanette Armbrust
  2019-2020 NAWBO National Board Chair

Related Posts

A Message From Our President: Fresh...
January 06, 2021

Happy New Year! We can’t believe it’s already 2021, but we’re so glad to leave 2020 behind. Our...

Driven By Purpose
December 17, 2020

Several months into this year’s pandemic in the U.S., a Forbes article reported that a lot of...

A Message From Our President
December 04, 2020

  The days are getting shorter and colder, but we still have time left in this year. For many...

Let's Take A Retirement Test Drive
November 24, 2020

As a new year approaches, you are likely putting plans in place for your future. With the...

Positively In the Flow
November 19, 2020

  Quite simply, cash flow—the money flowing in and out of our businesses each month—is...

NAWBO Chicago Logo
As The NAWBO National Conference 2020...
November 02, 2020

To me, being Brave is being Courageous.  To meet the challenges that we face every day as business...

Keep Your Eyes on the Road Ahead
October 29, 2020

You know how a good driver keeps their eyes on the road ahead? That’s how we need to think about...

Not Fearless, Just Brave
Not Fearless, Just Tremendously Brave
October 29, 2020

  It’s not what you learn from an experience, but how it changes you. And I know I speak for so...

NAWBO Chicago Logo
As a small business owner, what signs...
October 19, 2020

For my business, I had a lot of clients who were skeptical of taking classes online even though it...

Continuing the Vision and Legacy
August 07, 2020

In 1975, there were no business organizations with membership open to women entrepreneurs, so a...

A Purposeful Time
August 07, 2020

The 100th anniversary of the 19th amendment couldn't have come at a more purposeful time. While...

Our Seat at the Table
August 07, 2020

This week we will find out who the Democratic Vice-Presidential candidate will be. For the first ...

NAWBO Chicago 2020 Board Installation...
August 07, 2020

NAWBO Chicago Names First Latina President Elizabeth Colón Has Been an Advocate for Women Since...

Right to Control Our Destiny
August 07, 2020

As each woman embarks on her entrepreneurial journey her voice rings true to her aspirations of...

Stars Can’t Shine Without Darkness
August 07, 2020

  There’s an anonymous quote that says, “Stars can’t shine without darkness”—and as I look around...

Stepping Up For One Another
August 07, 2020

  I’ve seen NAWBO do so much for so many over the years—including myself—from connecting us...

A "Brick and Click" Store
August 07, 2020

As an optometrist with an eye care clinic and an eyewear boutique, my biggest lesson during this...

Trust the Process
August 07, 2020

Our biggest lesson for KDM was to trust the process, no matter where it leads and trust the team...

A Message From Our President
August 07, 2020

In writing my final newsletter, it’s hard to believe a year has already passed since I was inducted...

In the Right Place, at the Right Time
August 07, 2020

  The world feels like it literally changed overnight. Now a few months into the COVID-19...