Listen instead on your Monday Morning Drive:

Owners often ask me, “What should be on my financial dashboard?” My answer is always the same: it depends.

Don’t worry — I’m not trying to dodge the question. The truth is, your financial dashboard should evolve over time.

There are simply too many numbers business owners and managers could look at. But if you can only focus on a couple of key metrics, which ones are most relevant?

The concept of a financial dashboard means that, with limited time, you track only the highest-priority metrics. What exactly goes on this “highest priority” list changes over time, but essentially, it’s a baseline set of KPIs chosen based on your current situation, struggles, and goals.

So, while the answer is, “It depends,” considering your current circumstances will point you to the right metrics. Let’s explore the scenarios that dictate what should be on your financial dashboard and how to use this information effectively.

Scenario #1: Cash Flow Crisis

The most common pain point I hear about is cash flow problems.

Either you spend more money than you bring in, or receivables simply don’t arrive fast enough to cover your bills. The company seems to be doing well, but the cash just isn’t there.

This situation often arises when a business is more successful than anticipated. You have too many expenses going out and not enough receivables coming in quickly enough. It’s a patience problem — one that needs immediate attention.

In this situation, your Cash Flow Dashboard becomes most critical. It’s basic checkbook math:

• Your cash balance today
• Revenue expected on certain future dates
• Bills and expenses due on certain future dates

During a cash crunch, you’re looking at this dashboard daily. It drives decisions on:

• Which bills to pay now and which to delay.
• How much of a discount to offer for larger deposits on future work.
• How aggressively to pursue past-due receivables.
• Whether you need to increase your line of credit.

Remember, true cash flow problems should be short-term. If they persist, get professional help fast.

Scenario #2: Feeling Busy, But Not Profitable

Another concern I often hear is, “I feel really busy, but we’re not making any money.”

Busy compared to what? Last month? Last year?

First, we need to determine if you’re actually as busy as you think. The best way to do this is with a trailing 12-month comparison on your P&L statement.

Compare your 12 most recent months to the previous 12 months. Yes, this is two full years of data, but that’s the point. This eliminates seasonal variations and gives you a clear picture of your business performance compared to this moment one year ago.

With this data, ask yourself:

1. Are we actually making less money than we think?
2. Are we making the money we should be making?
3. Is this actually a cash flow problem in disguise?

Companies often confuse cash with profit. Having a lot of cash doesn’t always mean you’re making money, and making money doesn’t always mean you have cash on hand. Your dashboard should help you distinguish between the two.

Scenario #3: Struggling to Evaluate Overall Performance

The third most popular question I hear is, “How do I know if I’m doing well overall? And how do I share that insight with my team?” Your dashboard should include a management report for a more comprehensive view of your business health.

Start with that trailing 12-month comparison. This 50,000-foot view of your business directly reflects management’s efforts (or lack thereof). The numbers don’t lie. But you must dig into the “why,” whether the results are good or bad.

Next, analyze important ratios and KPIs in four areas:

1. Revenue Mix: Compare ratios like equipment revenue vs. talent revenue. Generally, if talent revenue is a larger piece of the pie than equipment revenue, that’s a good sign.
   
2. Cost of Goods Sold (COGS): Examine ratios of what each revenue stream requires in direct costs. Do a one-to-one comparison for each revenue stream — talent COGS to talent revenue, travel COGS to travel revenue, etc. Everything should be profitable. If not, you may need to raise your prices.
   
3. Overhead Expenses in Four Categories:

• Cost of Selling: Marketing, sales, commissions, etc. — everything you need to generate revenue. A healthy range is often 10–20% of revenue. If revenue is declining, you may need to increase this investment.
• Admin Costs: Management, office expenses, rent, utilities and such. These are generally steady.
• Financing Costs: Credit card fees, taxes, depreciation, amortization, etc. These are also typically stable.
• Operating Profit: Your management team controls operating profit. Is the company generating money from its core operations? Does it meet expectations?

1. Budget vs. Actual: While the above metrics look backward, it’s important for your dashboard to look forward. Compare your predictions to your performance to make necessary adjustments.

Unmasking Multiple Lines of Business

Don’t overlook the possibility of multiple lines of business within your company. For example, do you have both a DJ business and a product sales business under the same brand? These two distinct lines require separate reporting on your dashboard.

Failing to separate lines of business can lead to misleading conclusions. I once had a client boast about 50% growth in a calendar year, only to discover it came from a single, low-margin transaction unrelated to his core business. Your dashboard should help you avoid such misinterpretations.

Benchmarking Your Way to Success

Tracking your own performance in these key areas is powerful. But if you also benchmark your numbers against similar companies, you gain even richer insights on improving or maintaining your results.

That’s one of the most incredible benefits members of the Intentional Success Club enjoy. Business owners can share data and compare notes, illuminating what’s possible and what they need to change.

Simply having a dashboard doesn’t solve your problems. But tracking the right numbers helps you ask better questions, which leads to better decisions and solutions. It’s how you keep your finger on the pulse, navigate challenges, and steer your company toward intentional success.