Scaling Your Business? Keep These Key Numbers in Check

Growing your business is exciting, but without financial clarity, it can lead to cash flow issues, unnecessary debt, and unexpected expenses. To scale successfully, you need to stay on top of your numbers. Here are the key financial metrics that will help you grow with confidence.

1. Revenue vs. Profit

More sales don’t always mean more profit. It’s essential to track both so you’re not increasing turnover at the expense of your bottom line.

2. Cash Flow

Scaling requires investment. Understanding what’s coming in and going out ensures you have the cash to support your growth without financial stress.

3. Profit Margins

Low margins can make scaling unsustainable. Review your pricing and expenses to maintain healthy profits as your business grows.

4. Recurring Revenue

A steady, predictable income stream makes it easier to plan ahead and reinvest in your business with confidence.

5. Customer Acquisition Cost (CAC) vs. Lifetime Value (LTV)

Knowing how much it costs to acquire a customer compared to their long-term value helps you scale profitably rather than just growing for growth’s sake.

6. Debt-to-Income Ratio

If you’re using financing to scale, make sure your debt remains manageable and doesn’t put a strain on cash flow.

7. Tax Obligations

Higher revenue often means higher tax liabilities. Staying ahead with proper planning ensures you’re prepared when tax time rolls around.

Scaling isn’t just about growing revenue—it’s about growing sustainably. If you need help keeping your finances organised and making sense of these key numbers, we’re here to help!

Lauren 😁