If You Don't Know Your Numbers, You're Not the CEO, Just a Passenger

Knowing your numbers is essential for any founder looking to steer their business effectively. Financial literacy is not simply an administrative task; it is a core aspect of ownership that enables strategic decision-making. If you fail to grasp your financial situation, you surrender leadership to chance ...

In the realm of entrepreneurship, a refrain often heard is, “I'm not a finance person”. While it may offer comfort, using this as an excuse is a serious oversight. As a founder, you cannot afford to delegate financial literacy entirely. Even if you lack a formal finance background, being acquainted with your financial documents is essential.

You don't need to be your CFO, but you must understand what
you are looking at when it comes to your finances!

One fundamental concept that every entrepreneur should grasp is that profit is not synonymous with cash flow, nor is revenue an indicator of success. Your Profit and Loss statement, balance sheet, and cash flow are distinct financial statements that tell different stories about your business.

High revenue figures can paint a rosy picture, yet if expenses are outstripping income, you could be operating at a loss - even scaling into insolvency. Real-world examples abound of companies that, despite impressive top-line growth, found themselves financially crippled due to inadequate cash management. Recognising these nuances is vital for tactical business leadership.

The most dangerous course of action you can take as a founder is to trust blindly. Numerous entrepreneurs have faced calamities due to misallocated, misreported, or outright stolen funds. When financial discrepancies arise, the defence of “I didn't know” proves ineffective. Therefore, it is essential to cultivate financial visibility within your operating rhythm, ensuring that you are connected to the metrics that govern your enterprise.

Learning the language of numbers is not
merely advantageous, it is crucial!

You must understand what constitutes good financial performance, particularly in terms of gross margins, runway, and the comparison of forecasted versus actual figures. Engaging with data through dashboards or regular working sessions can transform your understanding and allow you to make informed choices. Investing in tools and habits to manage your finances is non-negotiable - even for those who dislike spreadsheets.

Ultimately, financial ownership is your most powerful move as a founder. Embracing financial literacy and taking command of your numbers instils confidence, enabling you to make stronger strategic decisions.

Understanding your financial landscape facilitates better risk management and paves the way for sustainable growth. Knowing your numbers should extend beyond mere recognition; it should become an integral part of your business's daily operations, informing decision-making at every turn.

If you're leading a business and fail to know your numbers, you're not the CEO; you're just a passenger along for the ride. Engaging deeply with your financial data not only affirms your role as a leader, but also enhances your ability to make informed, strategic choices.

And that will sustain and grow your enterprise.

Until next time ...

STEPH BIRCH
Founder & Transformation Catalyst

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About Steph Birch ...
With over 17 years of hands-on experience, Steph is that rare unicorn who’s done it all - and done it brilliantly. From transforming scrappy contact centres into high-performing hubs, to leading full-scale functions across finance, tech, product, data, compliance, sales and more - she’s scaled it, fixed it, or rebuilt it from the ground up. Steph’s superpower? Blending big-picture strategy with sleeves-up execution. She’s led operational strategy at board level in industries like Insurance, SaaS, Tech and BPOs — and knows how to drive results whether she’s supporting a scrappy founder or steering a complex enterprise. She’s passionate about people, powered by data, and obsessed with making operations smoother, smarter, and future-ready.  Are you ready to go from firefighting to future-focused, without losing the heart of your business?

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