Four Numbers Every Montana Woman Business Owner Should Know

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Starting and growing a business can be both exhilarating and overwhelming. For many Montana women business owners, the challenge of managing finances can feel particularly daunting. But here’s the thing: you don’t need to be a financial expert to run a successful business. You just need to keep track of a few key financial numbers that can make all the difference in understanding the health and trajectory of your business.

At the Rocky Mountain Women’s Business Center, we’ve seen firsthand how knowledge of these essential numbers can empower women entrepreneurs to make informed decisions and confidently steer their businesses toward success. Whether you’re just starting a business in Montana or have been running one for years, these four financial figures are must-knows for any woman business owner.

1. Revenue

First and foremost, you need to know your revenue—your business’s total income from all sales and services before any expenses are deducted. This is often the number that gives the clearest picture of how much money is coming in. Why it matters: Revenue shows you whether your business is growing, stagnant, or in decline. It also helps you set realistic goals and benchmarks. If you’re just starting your business, keeping an eye on your revenue allows you to assess whether your marketing efforts are paying off and if you're attracting enough customers. For more established Montana women entrepreneurs, tracking revenue helps you make decisions about scaling your business or launching new products or services.

2. Profit (Net Income)

Revenue is important, but it doesn’t give the full picture. That’s where profit comes in. Profit (or net income) is the money left over after all your business expenses—like rent, wages, and materials—are deducted from your revenue. Why it matters: Profit is the true indicator of how much money your business is making. If your revenue is high, but your expenses are eating up all the income, your business won’t be sustainable. Knowing your profit helps you adjust your budget, cut unnecessary expenses, and ensure that you’re building a business that can support you long-term.

3. Cash Flow

Cash flow refers to the movement of money in and out of your business over a certain period. It’s different from profit because it focuses on actual cash—not just invoices or sales. Positive cash flow means more money is coming into your business than going out, while negative cash flow indicates the opposite.

Why it matters: For many women business owners, especially those in rural Montana, maintaining a positive cash flow is essential. You could be profitable on paper but still run into trouble if you don’t have enough cash on hand to pay bills, employees, or cover unexpected expenses. Keeping a close eye on your cash flow helps ensure that your business has enough liquidity to operate smoothly.

4. Break-Even Point

Your break-even point is the amount of revenue your business needs to cover all its expenses, meaning you’re not losing or making money—you're breaking even. Knowing this number helps you understand how much you need to sell before your business starts generating profit. You can calculate your break-even point by dividing your fixed costs (expenses that don’t change) by the difference between your product price and variable costs (costs that fluctuate based on sales).

Why it matters: For Montana women starting a business, knowing your break-even point is crucial for goal-setting and realistic planning. It tells you the minimum sales volume you need to stay afloat, allowing you to adjust pricing, reduce costs, or improve your marketing efforts if necessary. For established businesses, it’s a helpful metric to gauge whether you’re meeting your baseline targets or need to course-correct.

Understanding Your Financials Leads to Business Success

Being a woman entrepreneur in Montana brings its own set of opportunities and challenges. Whether you’re in a bustling city or a small rural town, knowing your key financial numbers empowers you to make better decisions, spot potential issues early, and set yourself up for long-term success.

At the Rocky Mountain Women’s Business Center, we’re committed to helping Montana women business owners grow and thrive. Understanding these five financial numbers is just one way to take control of your business’s future. We offer workshops, coaching, and resources designed to support women entrepreneurs at every stage of their journey. Need some help with these numbers? Our Business Advisor, Marguerite, is a whiz with the numbers. Book a free one-on-one call with her to get your finances figured out!

By mastering these financial basics, you’ll not only grow your business but build the confidence to handle whatever challenges come your way.