Saturday, October 31, 2026

US owners lose 33 working days a year to financial worry, mostly from not knowing their numbers. Here's the 2-number Monday check that closes the gap.

Net -9% of small business owners reported higher sales last month. Net -19% reported higher profits. That gap is not noise — it is the story. NFIB's Small Business Economic Trends survey for August 2026, released 8 September 2026, shows profit trends falling more than twice as fast as sales trends across the US small business economy. If your top line looks steady and your bank balance still feels tight, this is almost certainly why.

Your Sales Are Not Lying to You. Your Margin Is Telling the Real Story

Most owners treat revenue as the health check for the business. It's the number on the bank statement, the number in the CRM, the number a bookkeeper reports first. It is also, according to NFIB's latest data, the wrong number to watch right now.

A net 31% of small business owners raised their prices in August — they did exactly what the textbooks recommend when costs rise. Profit trends fell anyway, and fell faster than sales did. Inflation concerns climbed to 16% of owners citing it as their top problem, tied with taxes for the top spot (NFIB SBET, August 2026). Pricing power alone isn't closing the gap. Something underneath the price increase — the real, line-by-line cost structure of the business — is moving faster than the price rise can cover.

This is the enemy: not a demand problem, not a sales team problem, but a blended-number problem. When you manage the business off one number — revenue, or even "gross profit" as a single lump — you cannot see which specific cost is eating the increase you just fought to win.

The Profit Lag Test

Here is the three-step check Kevin runs with every client who says "sales are fine, but I don't know where the money's going."

1. Chart your sales trend against your gross margin percentage — not gross margin dollars — for the last two quarters, side by side. If margin percentage is falling while sales are flat or growing, you have a Profit Lag. Most accounting software can produce this in minutes; most owners have never looked at it this way.

2. Test your price increases against your real input costs, line by line, not blended. A price rise that covers your average cost increase can still leave you exposed on your three or four highest-volume inputs — the ones actually driving the erosion.

3. Rank your costs by rate of change, not by size. The line item growing fastest — a freight surcharge, a subcontractor rate, a platform fee — is usually the leak, even when it's nowhere near your biggest expense.

"Kevin is an absolute powerhouse! He doubled our business's profits in the first month alone with lots more of his recommendations still to be rolled out."

— Curtis Hacon, Give A Sh!t

Why Owners Know This and Still Don't Do It

Almost every owner Kevin sits down with already knows, in general terms, that costs have crept up. What they don't have is a system that isolates margin by product line, service line, or customer segment on a rolling basis — so they manage on instinct and a single blended P and L instead. The other blocker is sequencing: pricing decisions, supplier renegotiations, and product-mix changes all get made in isolation, by whoever is closest to the fire that week, instead of through one accountable weekly review.

This is also where Simple-Growth's role has a boundary. Building the cost structure itself — the chart of accounts, the job costing, the line-item bookkeeping — is accounting and bookkeeping work, and it deserves a specialist. If you don't already have a management accountant or a strong Xero advisor doing this for you, Chartered Accountants ANZ and the Xero advisor network are good places to start. What Simple-Growth does is turn that data, once you have it, into the weekly decisions and accountability structure that actually move the margin — which is where the Simple-Growth System™ comes in.

Three Things to Check This Week

Pull your gross margin percentage trend for the last six months — not just this month's number. Identify your three fastest-rising cost lines, regardless of size. And ask, honestly, whether your last price increase was set by looking at real input costs or by guessing at what the market would tolerate.

Key Takeaways

  • Small business profit trends are currently falling more than twice as fast as sales trends (NFIB, August 2026: net -19% profit vs net -9% sales).
  • Price increases alone are not closing the gap — a net 31% of owners raised prices in August and profits still fell.
  • The Profit Lag Test compares margin percentage (not margin dollars) against sales over two quarters to catch this early.
  • Rank cost lines by rate of change, not size — the fastest-growing cost is usually the real leak.
  • A blended P and L hides the problem; line-item and weekly review systems are what surface it in time to act.

If your sales look fine and something still feels off, Kevin can help you find your Profit Lag before it costs you another quarter.

...and you become the owner who sees where your margin is leaking while there is still time to fix it.

Tuesday, October 06, 2026

Most SME owners know their cost per click. Almost none know their true cost to win a customer, because the real costs live in four different spreadsheets nobody has ever combined.

Tuesday, October 06, 2026

A pleasant weekly chat and a structured coaching session can look identical from the outside. Here's exactly what should be happening in the room if the second one is real.

Tuesday, October 06, 2026

Most SME task lists have no visible connection to the goal on the whiteboard. OKRs fix that gap in three simple steps, without turning your week into a spreadsheet exercise.

Tuesday, October 06, 2026

Giving away a free sample, audit or pilot feels like it removes risk for the prospect. Mostly it just removes their reason to commit. Here's the structure that converts instead.

Monday, October 05, 2026

There is no single best business coach in the USA. Here are five criteria for choosing one, a fair look at the main formats, and why an outside perspective can change what you see in your own business.

Monday, October 05, 2026

Eighty-four percent of small business owners sacrifice health or relationships to their business, new 2026 data shows. Here is the Transferability Number test that shows why, and what to fix first.

Monday, October 05, 2026

You're about to have your busiest quarter of the year. If nobody's planned for it, your bank balance is about to go the wrong way at exactly the moment the business looks like it's winning.

Monday, October 05, 2026

Ask most owners what they do and they'll answer instantly. Ask them why their business exists, beyond making money, and watch the pause. That pause is costing you customers, hires and referrals.

Monday, October 05, 2026

Ask your team to name the business's single most important goal this quarter. Five different answers from five people means you have one problem, not twelve: nobody knows what the goal actually is.

Monday, October 05, 2026

You trained your team to build rapport and never push, and your best customer last quarter still went with the competitor who pushed them to rethink the brief. Here's why relationship-selling is the weakest profile in B2B sales.

Monday, October 05, 2026

You've boosted the posts, hired the agency, rewritten the website twice, and the phone still isn't ringing. Before you spend another dollar, ask whether a stranger could explain what makes you different in one sentence.

Monday, October 05, 2026

Your competitor just launched the move you'd been 'finalising' for six months. Here's the fifty-year-old decision framework that fixes the real problem: not your strategy, your decision speed.

Sunday, October 04, 2026

EOS, Scaling Up, Vistage, ActionCOACH or Simple-Growth? A fair comparison with best-for and not-ideal-if for each option, a fit matrix and a nine-question quiz.

Sunday, October 04, 2026

What does a business coach cost in New Zealand? Published monthly and hourly ranges, cheaper options, how RBPN co-funding can help, and a checklist for judging value.

Sunday, October 04, 2026

New 2026 global research shows trust alone only earns a brand 48 percent acceptance into new territory - relevance takes it to 71 percent. Here is the two-question test that finds the real gap before you spend on expansion.