Why I'm Breaking Down Business Metrics (And the Two Models I'll Use)

Between family adventures, working in the garden, and managing our property investments, my wife and I have been fortunate to build several businesses over the years. My operations background means I naturally gravitate toward understanding how businesses actually work and the numbers behind the growth stories. Many of our friends and family have started their own successful ventures, and we often find ourselves in conversations about what's working, what's challenging, and what metrics actually matter.

The Problem Most Entrepreneurs Face

Most business owners I know are brilliant at what they do. They can solve customer problems, deliver great service, or build amazing products. But when it comes to the numbers that predict success or failure, they're flying blind.

They track followers, website visits, or total sales. These feel important but don't actually tell you if your business will survive next year.

Why I Selected These Two Business Models

I'm focusing on business consulting and online product sales because they capture what most entrepreneurs are building.

Business Consulting works like this: You have expertise, clients pay for that expertise. Simple model, but the economics change dramatically as you grow.

Online Product Sales means buying or making products and selling them online. Different challenges, but the same underlying math determines success.

The Growth Journey Every Business Takes

Starting Out:

• Customer acquisition costs a lot and takes forever

• You're serving early customers who tolerate imperfection (early adopters)

• Building systems while trying to deliver results

• Everything is harder and more expensive

Established Business:

• Referrals and reputation drive most new customers (lower cost to acquire)

• You serve mainstream customers with proven methods (larger market)

• Systems and processes make everything efficient

• Strong economics create predictable growth

Understanding where you are determines what metrics matter most.

What You'll Learn

Over the next eight posts, I'll break down:

• The 3 metrics that actually predict business survival

• Why revenue growth can hide serious problems

• How much customer acquisition really costs

• When to prioritize growth versus efficiency

• Early warning signs that predict trouble months ahead

Each post compares how these concepts work in both business models, so you can apply the lessons regardless of what you're building.

Getting Started

These aren't academic posts. It's my view as someone who loves figuring out what makes businesses work. If you're building something or thinking about it, hopefully these posts save you some trial and error.

Next up: The 3 metrics that predict your business future.