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November 3, 2025 13 mins
There are 5 numbers that should always be top of mind if you are a business owner.  Know these numbers by heart at all times and you will be able to make 75% of all business decisions.

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Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:04):
Hi, you love them too. The sensuow for you you.

Speaker 2 (00:19):
This is the Pipemin here on the Adventures pipe Man
W four c Y Radio with our Positively Pipemin segment
with Michael Barbarita. He is amazing with some powerful business strategies,
so let's bring him on to talk about them.

Speaker 1 (00:36):
Well, thank you for having me again, Deane.

Speaker 3 (00:38):
You know today I wanted to talk about Uh well,
let me say this. Business owners hate the numbers. They
can't stand looking they can't stand looking it financial statements.
They can't They don't understand them, they get blurred vision.
They don't want to deal with them. So when I

(00:59):
when I've done is I've tried to make it easier
where if you just know five numbers I call it
the vital five, that you'll be able to make about
sixty to seventy five percent of your daily business decisions
and with much more accuracy and instead of winging it.
And you know you still have to understand the story

(01:22):
that your financial statements are telling you, and you should
hire someone to.

Speaker 1 (01:26):
Help you do that.

Speaker 3 (01:26):
If you if you get blood vision looking at financials,
but if you at least have a hold on these
five numbers, then on a and by the way, on
a weekly basis. One of them on a daily basis.

Speaker 1 (01:40):
I'll get to that.

Speaker 3 (01:42):
Then you're going to be able to make better business
decisions and it's going to help you answer you know,
run around seventy seventy five percent of of your decisions
in a day. So let me go through those. And
like I said, you know, these are just five number
is that your bookkeeper has to give you or somebody

(02:02):
or you have to get them yourself, and you should
get them on a weekly basis, with one being on
a daily basis. So they are you should know what
your weekly sales are. You should know what your weekly
gross profit is on those sales. You should know what
your weekly gross profit percent is. That's three. You should
know what your net profit is for that week, and

(02:23):
you should know your current cash balance on a daily basis.
And if you know those five numbers, you'll be able
to make better business decisions. And by the way, the
most important number out of all those five is two. Actually,
if you know your cash and your gross profit percentage,
that will help you tremendously. Uh So I just narrowed

(02:46):
it down to two, but I'd prefer you to know five,
But I know, I know everybody's scared about more than you.

Speaker 1 (02:52):
Know more than one.

Speaker 3 (02:55):
If you know these five numbers, four on a weekly basis,
one of them on a daily basis, you'll make much
better business decisions, and you'll be making decisions based on
the numbers, not winging it, which is what happens today
with most business owners relative to relative to their business decisions.

Speaker 2 (03:19):
Can you tell me why each one of these five
is important to them making good business decisions?

Speaker 3 (03:28):
Okay, so you have to within a week, you have
to know what your sales were, because there will be
decisions on who to pay, what not to pay, and
that type of thing. And by knowing what your sales
out this week, unless your business is cash on delivery
or something of that nature, you'll be able to understand
what you can pay, what you can't pay. And also

(03:51):
you'll be able to make decisions like that when you
know what those When you know what your sales are
and assuming for a second that you're comfortable with the
number meaning not a not a bad week, you know,
not if the sales activity wasn't that bad at all,
it was a pretty decent week, you'll be making you'll
be able to make decisions regarding payroll, regarding scheduling, uh uh,

(04:17):
regarding ordering, whether it's ordering from vendors or just in
general ordering products and services. So you'll be able to
make better decisions by knowing your sales, by knowing your
gross profit and your gross profit percent. Those are kind
of uh in unison.

Speaker 1 (04:34):
Uh.

Speaker 3 (04:35):
You'll be able to make decisions uh centered around uh
whether or not you should do a job or do
do a particular profit, work with a particular customer, okay,
because you'll get an idea right off the bad whether
you're whether you're in the trades or whether you're just

(04:55):
in business in general, you'll get a good idea whether
or not that customer is worth wor work with.

Speaker 1 (05:01):
If you know your profit, go ahead.

Speaker 2 (05:04):
And you brought up a big point there that I
experience too, as we all do, and that is you
think you're making enough profit, but it does depend on
the client sometimes because some clients need a lot more
handholding than others, and that eats into the profit.

Speaker 3 (05:27):
Right, and you have to understand what your gross profit
is on a consistent basis in order to make that
decision correctly.

Speaker 1 (05:37):
So that's just another example, and.

Speaker 2 (05:39):
I'll give one quick example that happened recently to me.
Although I rarely use PayPal as a form of payment method,
why because their merchant fees are twice what my merchant
account is. And everybody uses it because it's easy. But
it's easy, but you're paying twice as much. So I

(06:02):
had a client that you know, wanted it via PayPal,
and not because of PayPal, not because that's their form
of payment. It's because they wanted a quote unquote PayPal invoice.
And so basically, in order to make that client happy,

(06:27):
I needed to do it by PayPal. I needed to
get charged twice as much. And so now that part
is not figured in your profit margin, So you may
have to figure it in your profit margin for specific clients.

Speaker 3 (06:44):
Exactly. Got a good point. Yeah, no question about that.
And you know that's that's the thing about. If you
don't know the numbers you're gonna wig it. Well, I
might be able to get away with working with this client,
but you don't know, you know, you don't you don't
know your number that you have to hit, and therefore
you don't know if that's going to be You don't
know if that particular engagement is going to be profitable

(07:05):
or not. So it's it's really important that just have
a handle on these five numbers. And when I go
to net profit, I need I need you to understand
if you're making money this week or not. I need
to understand on a weekly basis whether or not you're
making money. I think you have to know that now.
First of all, if you are making money, it helps
you sleep at night. If you're not making money, then

(07:26):
you have to make decisions associated with how do I
stop making money?

Speaker 2 (07:30):
You know, making money? Sorry, I was just saying I
think money. Making money is kind of important.

Speaker 1 (07:37):
Yeah, it's a little bit.

Speaker 3 (07:41):
You know, you have a T shirt that says you
don't scare me, but I think if you're losing money,
you might get a little scared.

Speaker 2 (07:48):
So well, and you know, I'm glad you use this
in your interview here. But the rest of it says,
I have three daughters.

Speaker 1 (08:02):
I see, I get.

Speaker 2 (08:03):
It, which my daughter's why my daughter's got it for me.
But true, it is true. It worked out well because, yeah,
if you're not looking at the numbers, you better be
scared because you're going to wake up one day at
the end of the year and realize that you thought
you had a good year, and you really had a
terrible year because too many business owners base how successful

(08:26):
their business is on revenue, right, and revenue doesn't make
you successful because if you experience a loss of instead
of a profit, it doesn't matter if you have ten
billion dollars in revenue. If you're spending twenty billion, you're
not doing too well, right and and.

Speaker 1 (08:49):
Well, that's the reason.

Speaker 3 (08:50):
You just have to have a handle of way your
business is at any point in time so that you
can make better, high quality decisions. And you'll see it.
You'll see you'll see it. You'll blow off that customer
that's not worth it, or or you'll pay You'll pay
for something because you know you have the cash, which
is the next thing. You'll pay for something because you

(09:14):
know they they will improve the value of your business
or increase uh increase the you know, the the profitability
of your business because.

Speaker 1 (09:24):
You know you can afford it, right.

Speaker 3 (09:26):
I mean, it's it's just having a handle on it
instead of just guessing. I see I see it time
and time again where business owners are just simply guessing
their way through decisions when there's actual data that's hidden
in their business.

Speaker 1 (09:40):
It's actually not hidden.

Speaker 3 (09:41):
It's pretty it's pretty uh visible, but this data is
there and they're not using it. And all I'm asking,
and I know it's a big ask, but all I'm
asking is is just understand these five numbers and you'll
be and you'll be three quarters of the way there.
You still have to understand the story of financial statements

(10:03):
of telling you and if you need help with that,
go get.

Speaker 1 (10:06):
That help because it's it's really critical.

Speaker 3 (10:09):
But at least you have the baseline information if you
if you really understand those five numbers.

Speaker 2 (10:17):
So how do people find out more information from you?
And maybe you can help them in this department to
make it easier.

Speaker 3 (10:25):
Well, what I like to what I like to do, Dean,
is I like to do book interviews. So I like
to interview people for the next edition of my book
because business is always changing and I'm always interested in
uh business owner's reaction to my strategies, whether it's good
or bad. And so what I'd like to do is
interview business owners. And if you'd like to interview, you

(10:48):
go to NeXTSTEP CFO dot net forward slash contact, fill
out the contact form and in the message box type
the word book interview and then will I'll arrange to
get a calendar link over to you so that you
could schedule the book interview. And you know, and the
thing is is what I do. The booking is pretty easy.

(11:08):
It's sixty minutes on zoom and then I uh present
strategies from my book and then I ask you to
comment on whether or not the strategy would work or
what the impact would be of that strategy if someone
was to implement it in your industry, and then I
documented for the book.

Speaker 1 (11:28):
And that's it. And I promise whoever.

Speaker 3 (11:31):
Who wants to do a book interview, I promise you'll
learn business strategies or competition isn't doing.

Speaker 1 (11:38):
There you go.

Speaker 2 (11:39):
And that's important because there's so many competitors that are
doing the exact same thing. The only way you're going
to stand out is to do something.

Speaker 3 (11:48):
Better, right, and everybody's call. And that's why everybody gets
frustrated when when people look for a lower price somewhere else,
because that's the only differentiation that a business owner is
giving a prospect is priced. That's the only place they
get defall to because they're not showing how they're different.

Speaker 2 (12:07):
Yeah, better exactly. Well, once again, you're a wealth of
knowledge and that this was actually really really helpful for
people because you are absolutely correct. Most business owners they
don't want they think ignorance is bliss, so they don't
want the numbers, but right, and they're.

Speaker 1 (12:24):
Scared of them. Yeah, like almost like the T shirt that.

Speaker 2 (12:28):
I I'm scared I really know how much I'm really
making because I think I'm doing a lot better. That's
usually what it is, though. You know, you have that
revenue stuff in your head and you're like, WHOA, I
just did a million dollars, right, and that feels good.

(12:49):
Doesn't feel good if you look at the numbers and
find out you spend a million and one dollars. That's
right there, It is all right. Well, we'll see you
again next week here on the Adventures pipe Man positively
Pipeman segment with more powerful business strategies from you the expert,
Michael Barbarian.

Speaker 1 (13:08):
Thank you, Dave great, thank you for listening to the
Adventures of Pipemin on w for CUI Radio.
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