Knowing Your Numbers

How Scorecards and Financial Data Build Confidence in Your Business

Running a business is hard work. Typical businesses deal with manufacturing challenges, the challenges of sales and marketing, and the logistics of distribution to lots and customers. With so much going on, many leaders feel like they are always reacting to the next crisis, customer complaint, or equipment breakdown.

It is common for owners and leaders in these businesses to rely on gut instinct. And to be fair, your gut may have served you well up to this point, even though that sense in the gut can change from exhilaration to foreboding 20 times per day.

But as your business grows, gut instinct is not enough. Growth brings complexity. Complexity demands clarity. And clarity comes from knowing your numbers.

When you know your numbers, you are able to lead with confidence. Instead of reacting to surprises, you see problems before they explode. Instead of arguing about opinions, your team rallies around facts. Numbers don’t lie, and that is why they are your best friend as a leader.

In this article, we’ll look at two kinds of numbers every business should track:

1. A weekly operating scorecard—10 to 15 key measurables reviewed every seven days.
2. A financial review—eight to 10 key ratios reviewed monthly or quarterly.

Together, these two sets of numbers will give you the clarity you need to grow with confidence.

WHY NUMBERS MATTER SO MUCH

When you don’t know your numbers, leadership feels heavy. You’re left wondering: Are we making money? Are we on track? Is something about to break? That constant uncertainty wears you down and drains your energy and confidence.

But when you know your numbers, you see the truth. Even if the truth isn’t what you want, at least you know where you stand. That knowledge gives you power. You can make better decisions, solve problems earlier, and lead your team with certainty.

Numbers do three important things for your business:

• They give early warning signals. If something starts to slip, you see it before it’s too late.
• They align your team. Everyone sees the same scoreboard and knows if you’re winning—both the company as a whole and the department they lead.
• They give you peace of mind. Even when things are tough, you know exactly what’s happening and have greater clarity around what to do next.

THE WEEKLY OPERATING SCORECARD

The first tool you need is a weekly operating scorecard. This is not complicated. It’s simply a one-page set of numbers that tell you if the business is healthy right now.

Think of it as the dashboard in your truck. You don’t need a hundred gauges. But you do need to see your speed, fuel level, and check-engine lights. Without those, you’re driving blind.

The weekly scorecard should track things that are:

• Activity-based—actions that drive results.
• Forward-looking—numbers that predict where you’re headed.
• Clear and owned—each number has a goal and a person responsible for it.

This list gives examples of what a typical, vertically integrated shed business might track each week:

1. Website traffic or online inquiries.
2. Number of new customer leads.
3. Quote-to-sale conversion rate.
4. Retail store foot traffic.
5. Number of sheds sold across all channels.
6. Average sale per customer.
7. Number of sheds manufactured.
8. Labor hours compared to plan.
9. Percentage of on-time completions.
10. Safety incidents or near misses.
11. Material cost per shed.
12. Number of warranty or service calls.
13. Number of sheds shipped or delivered.
14. On-time delivery percentage.
15. Cash collected this week.

These numbers are reviewed every seven days by your leadership or management team. The point is not to punish people for “bad” numbers. The point is to spot issues early, so you can solve them before they turn into big problems.

THE FINANCIAL REVIEW

The second tool is a financial review. Unlike the weekly scorecard, this is not about day-to-day activity. It’s about the long-term health of your business.

A financial review ideally happens monthly, but at a minimum at least quarterly. You don’t need to know every line item in your profit and loss statement or balance sheet. But you do need a handful of key ratios that tell you if your business is stable and profitable.

Here are some numbers that give you a good picture:

1. Gross margin percentage (revenue minus cost of goods sold).
2. Net profit percentage (the bottom line after cost of sales and general administrative expenses).
3. Production labor cost as a percentage of revenue.
4. Materials as percentage of revenue.
5. Distribution as percentage of revenue.
6. Inventory turns,
7. Accounts receivable days outstanding.
8. Accounts payable days outstanding.
9. Cash on hand (liquidity).
10. Debt-to-equity ratio.
11. Return on assets or return on investments (most important for owners).
12. Break-even sales level.

While every company may have slightly different challenges or areas of focus, with these numbers, you can answer critical questions: Are we making money? Is our pricing on target? Are we collecting fast enough? Do we have the cash to cover growth? Are we carrying too much debt?

When you know the answers, you sleep better at night.

COMMON OBJECTIONS TO TRACKING NUMBERS

When I work with leaders, I often hear pushback about tracking numbers. Here are a few of the most common objections.

• “I don’t have time to track all this.” The truth: The right numbers save you time. They prevent costly mistakes and wasted efforts. A weekly scorecard should take minutes to review, not hours.
• “We’ve run the business just fine without numbers.” The truth: Maybe you have. But past success doesn’t guarantee future success. Growth multiplies complexity. Numbers keep you from hitting a ceiling.
• “The data won’t be perfect.” The truth: You don’t need perfect numbers. You need consistent numbers. Direction matters more than perfection. You’re looking for trends, not accounting precision. Only once you actually start tracking data can you then begin to improve the quality of that data.
• “This feels like micromanagement.” The truth: Numbers are not about control. They are about clarity and accountability. They help your team succeed because everyone knows the score and can celebrate wins together.

TIPS FOR GETTING STARTED

If you’ve never had a scorecard or financial review, don’t panic. Here are some simple steps to get going:

1. Start small. Pick 10–15 weekly numbers and fewer than 10 financial ratios. Add more later if needed.
2. Assign ownership. Every number must have a clear owner who reports it each week or month. There must also be a goal.
3. Keep it visible. Put the scorecard and financial ratios on one page. Use simple charts or graphs if that helps.
4. Make it routine. Review weekly scorecards at the same meeting, same day, same time. Review financials monthly or quarterly without fail.
5. Use numbers as a conversation starter. If a number is off track, don’t point fingers. Ask: What’s the issue? What’s the solution? How can I help?

The goal is progress, not perfection.

CONCLUSION: NUMBERS BUILD CONFIDENCE

At the end of the day, your business doesn’t succeed just because you work hard. It succeeds because you make smart decisions, and smart decisions come from knowing your numbers.

When you track a weekly scorecard and review key financial ratios, you get the clarity you need. Problems show up early. Wins become visible. And your leadership team gains the confidence to grow without fear.

So, take the first step. Decide on your 15 weekly scorecard measurables and your eight to 10 financial ratios. Put them on paper. Review them consistently. Trust your gut—but lead with the truth. Because numbers don’t lie.