The five numbers every owner should see before coffee

Most small business owners run on gut feel and a bank balance. Both matter. Neither tells you what's about to go wrong. Five numbers, checked every morning, will.

1. Cash on hand, in months

Not the balance. The balance divided by what you spend in a normal month. Two months means breathing room. Under one means every decision is a cash decision.

2. Money owed to you, and how late

Total unpaid invoices, plus the share that's more than 30 days late. Late money is the cheapest money you'll ever find. You already did the work.

3. Sales this month against last year

Month against month fools you, because seasons swing. Compare to the same month last year and you'll see a slide while you can still fix it.

4. Gross margin

What's left after the direct cost of the job or the product. When suppliers raise prices and yours stay put, this is where it shows first.

5. Overtime or overload

Hours over plan, or the one person carrying everything. People problems show up as numbers before they show up as resignations.

Read them in one minute

The point isn't to stare at numbers. It's to know which one moved, why, and what to do next. Then get back to work.