When a business sees lower-than-expected profits, the focus often turns to increasing sales. But growth isn’t always the answer, especially if underlying costs are quietly eroding margins. In many cases, improving profitability starts by understanding exactly where your money is going and identifying what can be done more efficiently.

Many businesses already track financial metrics like profit margins, debt ratios, or cash flow. But knowing what these numbers are isn’t enough. To truly benefit, business leaders must use them to inform strategic decision-making, from hiring and pricing to expansion and investment.

A company's financial performance can make or break its success. Business managers, whether leading a small startup or a well-established enterprise, need a clear understanding of key financial performance indicators (KPIs) to maintain stability and achieve growth.

As the amount of KPI and management information NKC generates for our clients increases, I often find myself in numerous team calls discussing decision-making with business owners and management teams. During these discussions, I recall an insightful interview clip from Jeff Bezos that frames the decision-making process effectively.