I’ve sat around enough boardroom tables to know there’s a particular moment when you find out whether someone is really across their business.
They can talk confidently about strategy, growth and market position. Then someone asks a relatively straightforward question.
What’s the actual margin on that?
The pace changes. The language gets a little less certain. And out comes: “I’d need to check that.”
Now, there’s nothing wrong with needing to check a number. None of us carries an entire P&L around in our heads, but when it happens repeatedly, there’s a bigger problem.
Because avoiding the numbers for long enough starts to look a lot like trying to lead without them and that’s when you know there’s a risk that person is flying blind.
You don’t need to be the CFO
Knowing your numbers doesn’t mean doing the bookkeeping yourself, or spending your evenings buried in spreadsheets.
You should absolutely have great financial people around you, but there’s an important distinction:
You can outsource the calculation. You can’t outsource the understanding.
As a leader, you need to understand what the numbers are telling you well enough to ask good questions, challenge assumptions and make decisions without waiting for someone else to translate the financial implications for you.
That becomes even more important as you scale.
Growth magnifies everything - including the consequences of not understanding what’s happening underneath the headline revenue number.
What being across your numbers actually means
It’s not about memorising a spreadsheet.
It’s about being able to answer some fundamental questions about your business.
Where do we actually make our margin?
· What does it cost us to win a customer, and what is that customer worth over time?
· How long could we keep operating if revenue stopped tomorrow?
· Where is our cash position heading, not just where does it sit today?
The exact numbers will vary depending on your business. Work with your CFO, accountant or financial adviser to identify the metrics that matter most, but once you've identified them, make them yours.
Gut feel isn’t the enemy but it needs a check
In nearly three decades of running businesses, some of my best calls have come from instinct I couldn’t fully explain at the time.
I’m a big believer in backing your judgement.
Gut instinct is powerful because it’s informed by experience, not because it should be immune from scrutiny.
Experience has taught me that gut feel works best when you’re prepared to test it against what the numbers are actually telling you.
Sometimes they’ll reinforce your instinct, sometimes they’ll tell you to look again - both are valuable.
The cost of not knowing
If you’re not across the numbers, the decision doesn’t disappear.
Instead, you become increasingly dependent on whoever in the room does understand them - your accountant, CFO, board or adviser.
Those people should absolutely inform and challenge your thinking, but ultimately, if you’re the person responsible for the decision, you need enough financial understanding to exercise your own judgement.
So here’s the question I’d leave you with this week:
Which number would you least want to be asked about in your next board meeting?
And more importantly:
What would it take to get across it before someone asks?
We work through a full financial snapshot in Module 6 of Ready to Rise, designed to help you identify the numbers that matter most, understand what they’re telling you and get comfortable with the ones you might currently be avoiding.
If you’re not yet in the community, you’ll find the link here.
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