Most accountants, financial and business people tend to focus on the results of a business. This is obviously important, but what is even more important is what ‘drives’ the results.
The 7 Key Numbers aren’t ‘results’, they are ‘drivers’ that impact results i.e. profit and cash flow.
You won’t find them in typical financial reports – they need to be calculated. Nearly half of the 7 Key Numbers are derived from the Balance Sheet. How many business owners look closely at this report or really understand it? Scary thought!
Our objective in this book is to simply explain why the 7 Key Numbers are so vital for every business owner to understand and focus on improving. We’ve included very simple and pragmatic tactics to improve each one. The sooner you focus on these numbers the sooner you will improve your profit and cash flow.