Get free tips and templates for your small business! Subscribe now for updates and access to advanced tips and templates—all for free

Imagine driving your car at night with no headlights. That’s essentially what you’re doing when you run your business without tracking these five essential financial metrics.

Here’s what you risk:

1. Cash Flow Ignorance: Without monitoring your cash flow, you might wake up one day to find you can’t make payroll or pay your suppliers. Did you know that 82% of small businesses fail due to cash flow mismanagement?
2. Profit Margin Mirage: You might think you’re making money, but are you really? Without tracking your gross profit margin, you could be selling products at a loss without even realizing it.
3. Marketing Money Pit: Are you pouring money into marketing without knowing if it’s paying off? Neglecting your Customer Acquisition Cost vs. Customer Lifetime Value could mean you’re spending $100 to acquire a customer who only brings in $50.
4. The Sudden Cash Crunch: Ignoring your burn rate is like ignoring the fuel gauge in your car. You might be cruising along fine, only to suddenly run out of gas (or in this case, cash) in the middle of nowhere.
5. Growth Stagnation Surprise: Without tracking your revenue growth rate, you might not notice your business is stalling until it’s too late. By then, your competitors may have left you in the dust.