About Brilliance Brief

Hi friends! If you’re new here, this is your go-to source for practical, no-nonsense advice. Each week, I share real-world tips from my years in the C-Suite and now as an entrepreneur—helping you lead with confidence, grow your career, and live with purpose.

Today at a Glance

• Why knowing your numbers isn’t optional.

• The 7 financial metrics every leader should know.

• Resources to sharpen your financial skills.

Looking for my library of 70+ cheat sheets? It’s here. Enjoy!

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A quick shoutout to our sponsor, Masterworks, who helps keep this newsletter free for you. I only partner with brands I trust and think you’ll find valuable—thanks for supporting them!

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[6-min read]

I Never Saw Myself as a “Numbers Person”

I’ll let you in on a secret: I was terrible with numbers early in my career.

I always leaned toward language and writing. Math? Not so much.

In college, finance and accounting were my least favorite classes—I avoided them as much as possible.

But early in my leadership career, I learned something important: knowing my numbers wasn’t optional if I wanted to succeed.

Being able to speak in financial terms, recognize trends, ask the right questions, and make informed decisions didn’t just help my business grow—it opened doors I never imagined.

It gave me confidence in meetings with board members, credibility with my peers, and clarity when leading teams.

You don’t have to be a finance pro. But you do need to know the right numbers.

These 7 financial metrics are the ones every leader—no matter their background—should know.

They’re simple, powerful, and game-changing.

Let’s dive in.

1. Cash Flow

• Why it matters: Cash keeps your business (and personal life) alive. Without it, nothing else works.

• What to look for: Is cash coming in faster than it’s going out?

• How to calculate: Cash Flow = Cash Inflows – Cash Outflows

• Practical tip: Track it monthly. Always know how many months of cash reserves you have.

Personal note: Early in my career, I underestimated the importance of cash flow until a big client paid late. On paper, you might look flush. In reality, you can’t make payroll. Lesson learned: cash is king.

2. Revenue vs. Profit

• Why it matters: Revenue is what you earn; profit is what you keep.

• What to look for: Are profits growing alongside revenue, or are costs eating your earnings?

• How to calculate:

  • Revenue = Total Income From Sales

  • Profit = Revenue – Expenses

• Practical tip: Focus on improving profit margins—not just top-line growth.

Keep this in mind: Big revenue wins are exciting, but profit ensures you can pay the bills.

3. Gross Margin (%)

• Why it matters: It shows how efficiently you turn revenue into profit after direct costs (like materials or labor).

• What to look for: Higher margins mean you’re keeping more from each sale.

• How to calculate: Gross Margin (%) = (Revenue – Cost of Goods Sold) ÷ Revenue × 100

• Practical tip: Track margins by product or service to pinpoint where you’re winning—or losing.

Fun fact: When I first measured gross margin by product, I discovered that 20% of offerings drove 80% of profits. The Pareto Principle is real.

4. Return on Investment (ROI)

• Why it matters: Every project, hire, or tool is an investment. ROI tells you if it’s worth it.

• What to look for: Are you generating more value than you’re spending?

• How to calculate: ROI (%) = (Return – Investment Cost) ÷ Investment Cost × 100

• Practical tip: Use ROI as a decision filter: “What’s the payoff on this?”

Real talk: I used to jump into shiny projects without asking this. Once I saw resources—even time—as investments, I got much smarter about where to focus.

5. Customer Acquisition Cost (CAC)

• Why it matters: It shows how much you spend to acquire each new customer.

• What to look for: Is CAC lower than the lifetime value (LTV) of your customers?

• How to calculate: CAC = Total Sales and Marketing Costs ÷ Number of New Customers

• Practical tip: If CAC is rising, refine your marketing and sales strategies to improve efficiency.

Bonus insight: I started treating CAC like a game: How can we get better customers for less?

6. Days Sales Outstanding (DSO)

• Why it matters: DSO measures how quickly your business collects payments after a sale. Cash flow hinges on how fast you turn invoices into cash.

• What to look for: Are you getting paid within the expected time frame? A high DSO means customers are slow to pay, which can hurt your cash flow.

• How to calculate: DSO = (Accounts Receivable ÷ Total Credit Sales) × Number of Days

• Practical tip: Set clear payment terms (like Net 30) and follow up promptly on overdue invoices. Automating reminders or offering small discounts for early payments can speed up collections.

Why it’s important: I learned the hard way that slow collections can choke cash flow. Keep DSO in check, or you’ll feel cash-strapped even when the numbers look good.

7. EBITDA

• Why it matters: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) shows how profitable your business is at its core, removing the noise of taxes, interest, and accounting adjustments.

• What to look for: Is EBITDA positive and improving? A drop could signal rising costs or inefficiencies.

• How to calculate: EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization.

• Practical tip: Use EBITDA to benchmark performance over time or against competitors. It’s a clear signal of operational health.

Keep this in mind: When other numbers feel murky, EBITDA gives you a clear picture of performance. Investors love it for a reason.

Diving Deeper

Ready to keep learning about business finance? Here are a few great resources:

1. Book: Financial Intelligence: A Manager’s Guide to Knowing What the Numbers Really Mean by Karen Berman & Joe Knight

2. Book: Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz

3. Free Course from Goldman Sachs: Fundamentals of Business Finance

4. Free Course from Rice: Finance for Non-Finance Professionals

Final Thoughts

You don’t need to love spreadsheets to lead with confidence.

By understanding these 7 metrics, you’ll make better decisions, simplify financial conversations, and lead your business with clarity.

Start small. Pick one or two metrics to focus on this month. You’ll be surprised how much clarity it brings.

Until next week, lead with confidence and purpose.

Warmly,
Justin

P.S. I started sharing quick insights on Instagram. Come say hi!