Before you set goals, launch anything new, or start hiring, you need to answer one question:

How did your business really perform this year?

That’s what Step 2 of the Plan, Profit, Prosper planner is all about. Understanding your numbers is the most powerful way to lead your business with clarity and confidence. Without it, you’re guessing.

Once you understand the true story your numbers are telling, you can make sharper decisions, avoid expensive mistakes, and plan for 2026 with purpose.

In today’s Advent Calendar video, Michael Carthy talks about the importance of reflection, especially when it comes to your numbers.

Your Numbers Are the Story of Your Business

It’s not just about what’s in the bank. You need to look at the full picture. Income, profit, cashflow, and costs all come together to tell you where you are and what needs to change.

Getting clear on your numbers gives you answers to key questions:

• Can you afford to hire?
• Is your pricing strong enough?
• Where are the leaks in your cashflow?
• Which services or clients are most profitable?

The goal is simple: to move from 'I think we did OK' to 'I know exactly what worked and what didn’t.'

Why Guessing Doesn’t Work

It’s easy to assume you’re making money if revenue looks good. But growth doesn’t always mean profit. Some of your busiest months may have been your least profitable, unless you track it, you won’t know.

That’s where businesses get stuck. They grow top-line revenue but stay in survival mode because costs and cashflow aren’t under control.

Understanding your numbers means you stop reacting and start leading.

Review 2025 With These Prompts

Before you plan for 2026, take 20 minutes to review this year’s performance. Use these prompts to guide your thinking:

• Did your revenue, gross profit, and net profit meet expectations?
• Which products or services performed well, and which didn’t?
• How many clients did you win, and how many did you lose? Why?
• What marketing or referral activities delivered the best return?
• What does your cashflow say about timing, peaks, or pressure points?
• What surprised you about the numbers this year?

Write down your answers. Be honest. The goal isn’t to beat yourself up, it’s to learn what’s working and where you need to course-correct.

What This Review Helps You Do Next

Once you’ve got this clarity, your next steps become obvious. You’ll see which services to grow, which clients to adjust, and whether you need to raise prices or reduce costs.

It also helps you plan your tax, forecast your cashflow, and decide where to invest. More importantly, it gives you the confidence to set targets that are based on reality, not guesswork.

Get the Business You Want

Understanding your numbers is the foundation of a stronger business. Once you see what the numbers are really saying, you’ll start making faster, more confident decisions.

Use the Plan, Profit, Prosper planner to walk through your 2025 review.

Need help understanding what your numbers mean or where to focus?
Get in touch and let’s have a conversation. You don’t have to do this alone.

Start today: Download the planner and take Step 2 now