The most important thing any business owner can do is for he/she to know his/her numbers.

Why? Well, when you know your numbers, you absolutely know your business. It simply leads to better decision making, and it's the one thing that all successful business owners have in common. 



What does it mean to know your numbers? It means knowing and understanding your operating costs. And if you're in a service business, knowing your operating costs per direct labor hour, it means knowing and understanding your gross margin percentage on key products or services. It means knowing what products make you the most money and what products make you the least money. It means understanding your cost of goods sold, and how to reduce the individual components of cost of goods sold. It means knowing your inventory. It means knowing your inventory turns, ratio, and understanding when your inventory is slow moving. It means knowing your direct laborers' average wage rate.

When an employee or a vendor needs a decision because of your knowledge about the most important numbers and metrics in your business, it means to be on top of almost all business scenarios, maintain a stronger sense of control over your business, and most importantly, to reduce the risks of running a business. Trust me, I could go on for days. 

As you can see, a good business owner knows their numbers.