FEBRUARY 2025

If you’ve ever felt like you’re swimming in data but still can’t find clarity in your business, you’re not alone. 

In today’s digital age, we’re all tracking numbers, but are we tracking the right numbers? More importantly, are the metrics we’re following aligned with our business’s purpose and long-term vision?

This month, we’re diving deep into how to identify and measure the metrics that truly matter. Because tracking numbers is only useful if they help guide your business toward both profitability and purpose. Let’s cut through the noise and find the numbers that count.

Cash Flow Strategy of the Month

Forecasting Your Revenue During Slow Seasons

Cash flow forecasting is one of the most important financial metrics to track — especially if your business experiences seasonal fluctuations. By predicting your future inflows and outflows, you can plan ahead and avoid cash crunches.

Here’s a simple method to start forecasting:

1. Look Back to Look Forward: Review your cash flow over the past year to identify any slow seasons or patterns.

2. Set Monthly Projections: Based on past data, estimate your expected income and expenses for each month of 2025. Adjust for any anticipated growth or new offerings.

3. Plan for Variability: Set aside a buffer for the months where cash flow might dip to ensure you can cover essential expenses without stress.

💡 Pro Tip: Use a tool like QuickBooks or Google Sheets to build a cash flow projection for the entire year. This will give you a high-level view of your financial health and help you plan for any slower months.

Process Improvement Insight

Using Google Sheets for Real-Time Reporting & Metrics Tracking

Tracking your business metrics can seem overwhelming, but it doesn’t have to be. You don’t need expensive software — Google Sheets can be a powerful (and free) tool for tracking real-time data.

Here’s how you can create a simple metrics dashboard in Google Sheets:

1. Define Your Key Metrics: Choose the metrics that matter most to your business. This might include revenue growth, customer satisfaction, or website traffic.

2. Set Up Automated Data Entry: Use Google Sheets’ integrations with tools like Google Analytics or Zapier to pull data directly into your spreadsheet, so you always have the most up-to-date numbers.

3. Visualize the Data: Use graphs and charts within Google Sheets to create a clear, visual representation of your key metrics. This makes it easy to spot trends and make data-driven decisions.

🛠️ Free Resource: Download the Metrics Tracker Template I’ve created to help you set up your own dashboard and start tracking what really matters today!

Spotlight on Performance Management

Find Your North Star Metric

Every business has a North Star Metric — a single key metric that best reflects the value your business delivers to your customers and the growth you want to achieve.

Here’s how to find yours:

1. Identify What Drives Value: Ask yourself, “What’s the one thing that, when improved, directly impacts my customers and my business growth?” This could be customer retention, average order value, or even the number of new inquiries.

2. Make It Your Focus: Once you’ve found your North Star Metric, let it guide your business decisions. Align your team (or yourself!) around this metric, and focus your efforts on improving it.

3. Track Consistently: Measure your North Star Metric consistently and evaluate how changes in your business affect it over time. This will help you understand if you’re moving in the right direction.

Remember: not all metrics matter equally. Your North Star Metric is your compass — helping you stay aligned with both your purpose and profit goals.

Becoming Purpose-Driven

Why Some Metrics Don’t Matter (And How to Find the Ones That Do)

In the world of business, it’s easy to get caught up in vanity metrics — those numbers that look impressive but don’t actually drive meaningful results. Think about follower counts, website traffic, or even gross revenue. They might make you feel good, but do they actually reflect the success and impact you want?

Here’s a quick litmus test for any metric you track: 

 Does this number help me make better decisions for my business?

If the answer is no, it’s time to shift your focus. Metrics should be more than just numbers on a page — they should guide your actions and help you align with your long-term vision.

Ask yourself:

- Is this metric helping me grow my business in the right direction?

- Does it reflect my business’s core purpose and the value I deliver to my customers?

- Can I take meaningful action based on this metric?

If you’re tracking a number that doesn’t pass this test, it might be time to drop it and focus on the metrics that actually move the needle. Less can be more when it comes to tracking data!

Thanks for joining me this month as we dive into tracking the metrics that really matter for your business. Whether you’re forecasting cash flow, setting up automated reports, or identifying your North Star Metric, remember that meaningful metrics are the ones that guide you toward purpose-driven growth.

Make sure to download the Metrics Tracker Template to start organizing your data and tracking what matters. Also, if you would like to align your business finances with purpose, learn more about my Purpose-Driven Bookkeeping services.

Shalom,

Michelle Reyes

Bookkeeping & Consulting

mishael@myadonbusiness.com

(315) 220 - 0684