Sales are the number everyone watches, but they hide as much as they show. These three numbers tell you far more.
The three numbers
- Gross margin: what is left from each sale after the direct costs
- Cash runway: how many months you could run if sales stopped tomorrow
- Client concentration: how much of your income comes from your three largest clients
If one client is more than a quarter of your income, your business belongs partly to them.
Review these three every month, at the same meeting, and write down the trend. The direction matters more than the exact figure.
This article is general information, not advice for your situation. Talk to us before you act on it.