Let’s be honest.
Most small business owners did not start their business because they were desperate to spend their evenings looking at numbers.
You probably started because you were good at something.
You had a skill, a service, a product, an idea or a passion, and you thought, “I could turn this into a business.”
Lovely.
Exciting.
Full of possibility.
And then suddenly you realised that running a business also means understanding sales, costs, profit, pricing, tax, marketing, customer journeys, bank balances, cash flow, invoices, payment platforms and approximately 400 other things nobody mentioned when you had the original bright idea.
No wonder so many business owners avoid their numbers.
But here’s the thing.
Your numbers are not there to judge you.
They are there to guide you.
They show you what is working.
They show you what needs to change.
They show you where the money is going.
They show you whether your business is actually paying you properly.
And if it isn’t, they help you work out what to do next.
That is what I call Figures Without Fear.
No scary number nonsense.
No spreadsheet shame.
Just simple, useful numbers that help you make better decisions.
So, if you are a small business owner and you know you need to “get to know your numbers” but have been putting it off since approximately 2017, start with these five.
1. Your Turnover
Turnover is the total amount of money your business brings in before any costs are taken off.
It is your sales.
Your income.
The money coming into the business.
And yes, turnover matters.
You need to know how much money is coming in because it gives you a starting point.
But please hear me clearly:
Turnover is not the full story.
Turnover is not profit.
Turnover is not take-home pay.
Turnover is not the amount you can spend.
Turnover is simply the top number.
This is why I get a little bit twitchy when people only talk about turnover.
They say things like:
“I’ve had my biggest month ever.”
“I’ve hit £5,000 in sales.”
“I want a six-figure business.”
“I just need more turnover.”
And that might be brilliant.
But only if the numbers underneath it work too.
Because a business can have impressive turnover and still not pay the owner properly.
You can bring in more money and still feel broke.
You can have more sales and still have no profit.
You can build a bigger business and still be the last person to get paid.
So yes, track your turnover.
But do not worship it.
It is useful information, not the whole business.
What to track
Each month, write down:
how much money you invoiced
how much money actually came in
which products or services created that income
whether your income was higher, lower or the same as last month
This gives you a clear picture of what is happening at the top of your business.
But then we need to go further.
Because we are not here to chase turnover.
We are here to build a business that pays you properly.
2. Your Costs
The next number every small business owner needs to track is costs.
This is the money going out of the business.
And I do mean all of it.
Not just the big obvious things.
The little things too.
Because the little things have a habit of quietly nibbling away at your profit while you are busy doing something else.
You know the ones.
The £9.99 subscription.
The £17 monthly tool.
The membership you joined with good intentions.
The software you signed up for during a very persuasive webinar.
The app you were definitely going to use.
The platform you forgot you were paying for.
The “it’s only a small amount” costs.
Individually, they might not look too bad.
Together, they can add up to a very expensive pile of business clutter.
And if you are not tracking them, you may not realise how much of your payday is disappearing before you even get near it.
Because profit is where payday lives.
And costs reduce profit.
That does not mean all costs are bad.
Some costs are necessary.
Some are useful.
Some are proper investments.
But you need to know which is which.
A cost should either help you run the business, deliver the service, make sales, save time, improve quality or support growth.
If it is doing none of those things, it may need a little talking to.
Or cancelling.
Possibly both.
What to track
Each month, write down:
your fixed costs
your variable costs
your subscriptions
your marketing spend
your software and tools
your delivery costs
your training and memberships
anything else leaving the business
Then ask:
Do I still need this?
Is it helping the business?
Is it making or saving money?
Is it supporting my goals?
Am I using it?
If the answer is no, it may be time to stop paying for it.
Not every cost is a problem.
But unknown costs are.
3. Your Profit
This is the number that matters more than most people realise.
Profit is what is left after your costs have been taken away from your turnover.
Simple version:
Turnover minus costs equals profit.
Now, there are different types of profit, and your accountant can get very excited about gross profit, net profit, margins and all the other bits.
But at the basic level, I want you to understand this:
Profit is the money your business actually creates after the costs of running it.
And profit is where payday lives.
If your business has turnover but no profit, it will be very hard to pay yourself properly.
If your business has sales but all the money disappears into costs, something needs to change.
If your business looks busy but there is nothing left at the end of the month, you do not just need more sales.
You need to understand your profit.
This is where so many small business owners get caught out.
They think the problem is not enough clients.
But when we look properly, the problem might be:
prices are too low
costs are too high
delivery takes too long
the offer is not profitable
too much money is being reinvested too soon
the business model does not support the owner’s pay
More turnover will not automatically fix those things.
Sometimes more turnover just gives you more work, more costs and more exhaustion.
And nobody needs a bigger business that still does not pay them.
What to track
Each month, write down:
total income
total costs
profit left after costs
profit margin if you can work it out
which offers made the most profit
which offers took the most time for the least return
You do not need to make this complicated.
Start simple.
Money in.
Money out.
Money left.
That alone can create some very useful ta-da moments.
Possibly with a little bit of swearing.
But still useful.
4. Your Average Order Value
Your average order value is the average amount a customer spends with you.
This is such a useful number because it helps you understand how many customers, clients, bookings or sales you need to reach your income goals.
And it can also show you whether you are working harder than you need to.
For example, if you want to bring in £5,000 a month and your average customer spends £100, you need 50 customers.
If your average customer spends £500, you need 10 customers.
If your average customer spends £1,000, you need 5 customers.
Same turnover target.
Very different business model.
This is why knowing your average order value matters.
It helps you make better decisions about your pricing, packages, offers and marketing.
Because if your average order value is too low, you may be constantly chasing volume.
More clients.
More orders.
More bookings.
More admin.
More delivery.
More everything.
And yes, volume can work for some businesses.
But for many small business owners, especially service-based business owners, too many low-value sales can become exhausting.
You end up busy but not paid enough.
And we are not building a business where you need to lie down in a dark room every Thursday just to recover from your pricing.
What to track
Each month, work out:
total sales divided by number of customers
For example:
£4,000 sales divided by 8 customers = £500 average order value.
Then ask:
Is this average order value high enough?
Do I need to increase prices?
Can I create packages?
Can I add an upsell?
Can I improve the customer journey?
Can I encourage repeat business?
Can I focus more on the offers that bring in better value?
Your average order value is not just a number.
It is a clue.
It tells you whether your business model is making things easier or harder.
5. Your Payday Number
This is my favourite one.
Your payday number is the amount you want your business to pay you each month.
Not “whatever is left.”
Not “a bit if I can.”
Not “I’ll start paying myself when I’m bigger.”
An actual number.
Because if you don’t know the number, you can’t hit it.
Your payday number matters because it gives your business a target.
It tells you what the business needs to support.
It helps you work out how much you need to sell, what your prices need to be, how many customers you need and whether your current business model can actually pay you.
Without a payday number, you are guessing.
You are hoping.
You are waiting to see what happens.
And that is not a pay strategy.
Your business should not pay everyone else and leave you standing at the back of the queue with your hand up, hoping there might be something left.
You are not an optional extra.
You are the person making the whole thing happen.
Your pay needs to be built into the business.
That does not mean you have to take your dream amount from day one.
Start where you are.
If your ideal payday is £3,000 a month but you are currently taking nothing, start with £250.
Then £500.
Then £750.
Then £1,000.
The amount can grow.
But the habit needs to start.
A real business needs a payday.
What to track
Each month, write down:
how much you want to pay yourself
how much you actually paid yourself
the gap between the two
what needs to change to close the gap
whether your prices, profit and sales support your pay goal
This is where the numbers come together.
Because once you know your payday number, you can work backwards.
You can ask:
How much profit do I need?
What are my fixed costs?
What are my variable costs?
What turnover do I need?
What is my average order value?
How many customers do I need?
What needs to change?
This is where your numbers stop being scary and start becoming useful.
Why These 5 Numbers Matter
These five numbers give you a simple starting point.
Turnover tells you what is coming in.
Costs tell you what is going out.
Profit tells you what is left.
Average order value tells you how your sales are working.
Your payday number tells you what the business needs to support you.
Together, they give you a much clearer picture of what is happening in your business.
And once you can see what is happening, you can make better decisions.
You can stop guessing.
You can stop panicking.
You can stop chasing turnover for the sake of it.
You can stop assuming you need more clients when actually you may need better prices, fewer costs or more profitable offers.
You can stop treating your own pay like an afterthought.
Because your numbers are not there to make you feel bad.
They are there to help you lead your business properly.
What Happens If You Don’t Track Them?
If you do not track these numbers, business becomes a lot harder than it needs to be.
You make decisions based on feelings.
You look at the bank balance and hope for the best.
You assume more sales will fix everything.
You keep spending money without knowing whether it is helping.
You undercharge because you do not know what you need to make.
You avoid paying yourself because you are not sure whether the business can afford it.
You get busy, but not necessarily profitable.
And then you start wondering if you are the problem.
You are not the problem.
You may simply be missing the information you need.
That is all numbers are.
Information.
And once you have that information, you can do something with it.
Keep It Simple
Please do not turn this into a 47-tab spreadsheet monster unless you genuinely enjoy that sort of thing.
Start with one page.
One notebook.
One spreadsheet.
One monthly check-in.
Write down the five numbers:
Turnover.
Costs.
Profit.
Average order value.
Payday number.
That is enough to begin with.
Then, once a month, ask yourself:
What is this showing me?
What needs to change?
What is working?
What is not working?
Where is the money getting stuck?
What is my next best step?
That is how you start becoming the CEO of your business instead of just the person doing all the work.
A Simple Monthly Numbers Check
At the end of each month, sit down with a cup of tea and answer these questions:
How much money came into the business?
How much money went out?
How much profit was left?
What was my average order value?
How much did I pay myself?
Was that enough?
If not, why not?
What needs to change next month?
That is it.
No drama.
No judgement.
No scary number nonsense.
Just a practical check-in with your business.
Because when you know your numbers, you can make decisions with more confidence.
And when you make better decisions, your business has a much better chance of paying you properly.
Need Help Understanding Your Numbers?
If you are making sales but still not paying yourself consistently, these five numbers are a brilliant place to start.
They will help you see whether the issue is your pricing, your costs, your profit, your average order value or the fact that your pay is not built into the business properly.
And if you want more help with that, I have a page all about how to pay yourself from your business, where I explain why your payday needs to be part of the plan, not something you hope happens at the end of the month.
Because you do not need to become a financial expert.
You just need to understand the numbers that matter.
Final Thought
If you only track five numbers in your small business, start with these:
Turnover.
Costs.
Profit.
Average order value.
Payday number.
They will not tell you everything.
But they will tell you enough to stop guessing.
And that is where things start to change.
Because a business that pays everyone else but not you is not the dream.
Your business should support you too.
So get to know the numbers.
Face them without fear.
Use them to guide you.
And start building a business that pays you properly.
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