Business Owner Scorecard
Your business has KPIs. So should your finances.
What This Means
What financial numbers should every business owner know?
I believe there are seven.
One of the biggest mistakes I see business owners make is spending all of their time working in their business and not enough time working on their personal finances.
Building a successful business is only part of the equation. The goal isn’t simply to grow revenue—it’s to make sure your business creates personal financial freedom.
That’s why I encourage every business owner to know seven key financial numbers: your monthly spending, emergency fund target, savings rate, business profit margin, investment allocation, net worth, and work optional number.
Think of these as your personal financial dashboard. Each number tells you something different, but together they help answer one important question:
Is all of your hard work moving you closer to making work optional?
You don’t need to track hundreds of financial metrics. Focus on the numbers that have the biggest impact on your long-term financial success, review them consistently, and make adjustments as your business and personal life evolve.
Common Questions
Why should business owners invest outside of their business?
Your business may become one of your largest assets, but it shouldn’t be your only asset. Building wealth outside your business creates flexibility and reduces your dependence on one source of value.
What’s the most important financial number?
If I had to pick one, it would be your monthly spending. It’s the foundation for almost every other financial decision, including your work optional number.
Are there other financial numbers I should track?
Remember This:
Know your numbers. Build your future.