Financial Storytelling: Simple Strategies for Small Business Owners

As a small business owner, you’re probably knee-deep in the day-to-day operations—whether you’re making products, serving clients, or just keeping things running smoothly. That’s where your focus should be. But here’s the thing: while you’re busy working in your business, there are foundational aspects outside of it that need attention, too. Things like your financials, processes, and measuring success. Often, these take a backseat because they’re not as exciting or urgent. But when left unchecked, they can cause problems down the road.

The good news is, you don’t need everything figured out at the start. You don’t need the fancy tools, complex systems, or the perfect plan to succeed. But you do need a strong foundation. You need clear goals and a simple plan for achieving them. And, importantly, you need to track a few key things along the way. Whether you’re a solopreneur just starting or a small business on the edge of growth, measuring success—on a very basic level—helps you know exactly where your business stands.

Start Simple with the Basics

For many small business owners, it’s not immediately clear what to measure. But it’s essential to start somewhere. It doesn’t have to be perfect; it just needs to be something you can measure consistently. Think of it as getting your bearings before you go on a long journey. You don’t need a big spreadsheet or fancy system—just a basic understanding of where you stand will help you make smarter decisions.

Here are a few things to track, no matter where you are in your journey:

• Cash Flow: This one’s simple but crucial. Knowing where your money’s coming from and going will help you stay in control of your finances. It doesn’t have to be complicated—just make sure you have a way to track the inflow and outflow.
• Customer Acquisition Costs (CAC): How much does it cost to bring in a new client or customer? If you’re spending on ads, marketing, or promotions, you need to know if those investments are paying off.
• Profit Margins: It’s easy to focus on revenue, but profitability is key. Understanding your margins—even roughly—gives you a snapshot of your business health.
• Employee Engagement and Retention: If you’ve got a team, keep an eye on how happy and engaged your employees are. You don’t need formal surveys right away, but noticing turnover or team morale can help guide you.

Starting with a few simple numbers like these will give you clarity on where you’re at. You don’t need an overly complicated system—just a basic understanding that helps you make decisions with confidence.

Tech Can Help—But Don’t Get Distracted

There’s no shortage of tech tools and apps designed to make life easier for small business owners. From accounting software to project management tools to HR platforms, there’s a solution for just about everything. But here’s the key: You don’t need to jump on every new tool that pops up. If you try to use every shiny app you come across, you’ll probably end up more overwhelmed than helped.

Instead, focus on the basics first. Look at what you need help with now, and pick tools that solve those problems. Need to track expenses or manage invoices? An accounting tool might be a good first step. Having trouble staying organized? A project management app can help. But don’t feel pressured to add every tool to your toolbox. Tech should make your life easier, not add more complexity.

There’s an example from The Sill, a plant delivery business that started small but grew quickly. They focused early on understanding their customer data and tracking their marketing efforts. By measuring how their marketing dollars were spent and tracking customer engagement, they were able to adjust their approach and maximize ROI. This helped them scale effectively, even with limited resources. Their ability to streamline operations with the right tools made all the difference as they grew.

Understanding Financials Isn’t Just for Experts

One of the biggest challenges for small business owners is feeling comfortable talking about financials. But financial storytelling is something every business owner needs to understand. It’s not just for CPAs or accountants. The numbers you track are telling a story about your business. The trick is knowing how to interpret that story and then share it with others in a way that makes sense.

For example, if you’re spending money on marketing campaigns, don’t just say, “I spent X amount on ads.” What’s more valuable is sharing how that investment led to tangible results. “I spent X on ads, and that brought in Y new clients” gives your clients (or potential investors) a clear picture of how your decisions are paying off.

Build Your Strategy Around What You Can Measure

When you’re growing your business—whether it’s taking on new projects, expanding your team, or bringing in new clients—it’s easy to get excited and lose focus on what really matters. That’s why having a simple strategy for measuring success is so important. If you know your goals and track the right metrics, you’ll be able to make smarter decisions and stay on course.

This doesn’t mean you need a complicated, multi-page strategy right away. It’s about defining your goals clearly, setting a few simple metrics to track progress, and adjusting as you go. Starting small is better than not starting at all.

Financial Storytelling for Your Clients

If you provide services to other businesses—whether it’s HR support, consulting, or financial advice—financial storytelling can help you build stronger relationships with your clients. The better you can explain how their investment in your service is driving results, the more trust you’ll build. You don’t need to overwhelm them with jargon; just translate the data into something that’s easy to understand and meaningful to them.

By showing clients the return on their investment, you build confidence. And when your clients feel confident in their decisions, they’ll trust you more.

Don’t Overthink It, Just Start

Building a business isn’t about perfection—it’s about having a strategy, measuring what matters, and making adjustments as you go. You don’t need to have everything figured out from day one, but you do need to start tracking and measuring. The sooner you begin, the better equipped you’ll be to grow and scale your business. With a few simple metrics in place, you’ll be able to make smarter, more confident decisions and keep your business moving in the right direction.