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Free Guide — Odyssey ERP

5 numbers you need to know every week before making any decision

A practical guide for small and growing business owners — no complicated jargon. Every number comes with the formula, why it matters, a real example, and the action to take.

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1

Gross Profit Margin

(Total Sales − Cost of Goods Sold) ÷ Total Sales × 100
Why it mattersTells you whether your product or service is actually profitable. If the margin is weak, more sales just means more loss.
ExampleA company sold for 100,000, cost of goods was 60,000. Margin = 40%.
ActionTrack it weekly. If it drops, review your pricing or your costs.
2

Operating Cash Flow

Cash in from operations − Cash out from operations (excluding investments or loans)
Why it mattersAccounting profit can be positive while your cash is negative. That gap is what actually bankrupts companies.
ExampleProfit = 40,000 but customers only paid 20,000. Cash flow = -20,000.
ActionTrack it weekly. Three weeks negative in a row is a warning sign.
3

Days Sales Outstanding (DSO)

(Accounts receivable ÷ Total credit sales) × 30 days
Why it mattersTells you how long customers actually take to pay. Every extra day is frozen cash and a lost opportunity.
ExampleReceivables 300,000, credit sales 200,000/month. DSO = 45 days.
ActionIf DSO is over 45 days, review your collection policy. Above 60 days is a red flag.
4

Burn Rate

Total fixed monthly expenses (salaries + rent + utilities + subscriptions)
Why it mattersTells you how long the company can survive if sales stopped. This defines your financial safety margin.
ExampleMonthly expenses 80,000, available cash 400,000. Runway = 5 months.
ActionCalculate your runway every month. Below 3 months means an urgent decision.
5

Customer Acquisition Cost (CAC)

Total marketing and sales spend ÷ number of new customers in the same period
Why it mattersTells you whether each new customer brings profit or loss.
ExampleMarketing spend 20,000, 10 new customers. CAC = 2,000 per customer.
ActionCompare CAC to Average Order Value. If CAC is over 30% of AOV, review your marketing.

The bottom line

These 5 numbers aren't just numbers. They're your real mirror.

Track them weekly and you drive with your eyes open. Skip them and you drive blindfolded.

Want a system that calculates these 5 numbers for you automatically every day? Book a free consultation
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