Companion to "The three numbers you actually track."
One row per week, written in the money hour. Cash on hand is the survival gauge, net margin is the truth serum, revenue per hour is the exchange rate between your life and your business.
| Number | Computation | Worked example as taught |
|---|---|---|
| Cash on hand, as months of cover | Every dollar the business can reach this week (business account, tax account, reserve) ÷ average monthly cost of running the business | $4,500 of cash against $1,800 monthly cost = 2.5 months of cover |
| Net margin | Profit ÷ revenue, computed monthly from categorized hours; measure per job and per month | $1,000 revenue, $700 costs, $300 profit = 30 percent net margin |
| Revenue per hour (or per unit) | Week's revenue ÷ hours actually worked to produce it, delivery, admin, driving, all of it | A $1,000 week across twenty real hours = $50 an hour earned |
| Date | Cash | Months of cover | Net margin % | Revenue/hr | The week's one decision |
|---|---|---|---|---|---|
| $ | $ | ||||
| $ | $ | ||||
| $ | $ | ||||
| $ | $ | ||||
| $ | $ | ||||
| $ | $ | ||||
| $ | $ | ||||
| $ | $ | ||||
| $ | $ | ||||
| $ | $ | ||||
| $ | $ | ||||
| $ | $ | ||||
| $ | $ |
| Line | Start of quarter | End of quarter | Trend |
|---|---|---|---|
| Months of cover | ☐ rising ☐ flat ☐ shrinking | ||
| Net margin | % | % | ☐ rising ☐ flat ☐ rotting |
| Revenue per hour | $ | $ | ☐ rising ☐ flat ☐ falling |
| Cash vs profit: do they agree? (profit is not cash; when the two disagree, cash wins the argument) | ☐ Agree | ☐ Disagree, why: |
The test for any other metric, offered without mercy: does this number change a decision you would make this month? If yes, it belongs in your log. If it only changes your mood, it is a vanity metric wearing a suit. Followers, pageviews, impressions, total clients, likes, email subscribers, even gross revenue alone: all of these can climb for a year while cover-months shrink and margin rots.