One truth that holds across boardrooms, startup hubs and family-run companies: Businesses don’t fail due to a scarcity of ideas, ambition or hard work. They flop when leaders — both women and men — make decisions without financial clarity. As a CFO, I’ve had the privilege of working with visionary founders, accomplished women entrepreneurs and seasoned business leaders. The distinction between those who scale sustainably versus those who fumble here and there is not brainpower or passion — it is command over numbers. Spreadsheets are not finance. It’s about control, stability and confidence.
Numbers Are a Leadership Skill, Not an Accounting Responsibility. Many of them think finance is something “managed by the accounts team.” That thinking inhibits good decision-making. When founders — regardless of gender — grasp core financial metrics, they:
- Invest with confidence.
- Scale responsibly.
- Protect cash flow.
- Earn investor trust.
- Lead from data, not emotion.
Let’s examine the seven financial metrics that every business leader must know.
ROI: Respect for Capital.
ROI = (Net Profit ÷ Cost of Investment) × 100.
ROI provides the answer to a leadership question: Was this decision worth it? Whether you’re a woman building a brand (or a man expanding operations) capital discipline is the difference between sustainable growth and reckless expansion. Great leaders don’t ask, “Did we try?” They pose, “Did it create value?”
ROAS: Growth With Accountability.
ROAS = Revenue from Ads ÷ Cost of Ads.
Marketing should be about profit, not just visibility. Low ROAS tells you growth is cosmetic, but not commercial. Smart leaders don’t expand ad budgets until they appreciate the return. Growth not ROAS defined is one of the quickest ways to burn cash.
Working Capital: Essential for Business Survival.
Working Capital = Current Assets − Current Liabilities.
Many successful companies close because they are devoid of cash. Working capital decides if you are able to:
- Pay salaries on time.
- Manage vendor obligations.
- Survive slow cycles.
Cash flow issues don’t present themselves — they come after you.
Profit Margin: The Measure of a Success’s Quality.
Profit Margin = (Net Profit ÷ Revenue) × 100.
Revenue creates excitement. Margins create security. High sales with bad margins — especially in competitive or unpredictable markets — make businesses brittle. Sustainable leaders guard margins before seeking quantity.
EBITDA: Real Strength of Operating Operations.
EBITDA = Operating Income + Depreciation + Amortization.
EBITDA is used by investors, lenders, and acquirers to see if a company is indeed achieving the expected level of business excellence. But we cannot take the real-life result of this out of the analysis. It speaks to what a really strong company at its core is supposed to be, beyond accounting adjustments or funding structures. Strong EBITDA = business resilience.
Break-Even Point: A Reality Check
Break-Even Point = Fixed Costs ÷ (Selling Price − Variable Cost).
Until you cross break-even point, the business is financing itself with hope — not profit. Break-even insights help sharpen pricing decisions, cost control and expansion timing. And this number must be something every business leader wants to know.
The Revenue Run Rate: Vision With Discipline.
Revenue Run Rate = Revenue for Period × Number of Periods in a Year.
Run rate guides leaders to projection planning of growth and scale. But absent margin and cash flow context, it can foster false confidence. Numbers should be read together — not selectively.
Final Thought: Leadership Is Financial Awareness.
Successful businesses today are built by both women and men: women and men do it on the basis of one common understanding. Finance has nothing to do with gender, background, or qualification. It’s about who owns decisions. Ideas start businesses. Leadership sustains them. Numbers decide which ones survive.
