Before you say yes… run the numbers

This week, we had a solar panel salesperson come to the house. Before he even sat down, we told him outright: “We are skeptical.”

Not in a combative way. Just honest.

Solar panels seem so responsible and forward-thinking. Helping the environment and saving money. It sounds smart. 

But I don’t make financial decisions based on feelings. I make them based on data. 

So after he left, I did what I usually do and built a spreadsheet (everyone does that, right?). 

This wasn’t a quick estimate. It was intense. I laid out multiple scenarios, potential rate increases and long-term savings projections. 

Because if I’m going to invest in something big like solar panels, I want the full story. Not just the sales pitch. 

Here is what we found…

Looking at just one year alone? It wasn’t a “yes.”

Actually, if we only focused on the first 12 months, it was really closer to “probably not.”

But when we stretched out the timeline and looked at the savings over the next 5-10 years. That is when the clarity started showing up. 

And that is exactly what happens in business every single day.

The Trap Most Business Owners Fall Into

You look at:

• This month’s revenue
• This quarter’s expenses
• This year’s profit
• (or maybe just the current bank balance)

And you make decisions based on a single snapshot in time. 

But businesses aren’t snapshots. They are timelines. 

Looking at only “right now” can make a great investment look scary. And looking only at the long-term dream can make bad investments look exciting. 

The thing is… you need both.

The short-term view helps you answer:

• Can we afford this right now?
• Does cash flow support it?

And the long-term view helps you see:

• What does this do for us over 3-5 years?
• Does it increase profitability? Efficiency? Capacity?

That is why we are always looking at our clients numbers to find the real story.

Business Finance in Plain English

Return on Investment (ROI): ROI answers one simple question: “If I put money into this, how much do I get back?”

 Why it matters: Understanding the ROI of whatever you are doing keeps you from making decisions based on emotions, trends, or pressure. Instead, it helps you evaluate whether an investment actually strengthens your business over time.

How to Apply This in Your Business

If you’re considering:

• Hiring a key team member
• Investing in new software
• Expanding your space
• Launching a new service line

Don’t just ask, “Can we afford it?”

Ask these instead:

1. What is the expected financial return? Will it increase revenue? Reduce expenses? Improve efficiency that leads to more capacity?
2. Over what timeframe will that return show up? 6 months? 18 months? 3 years?
3. What assumptions am I making? Growth rate. Sales consistency. Cost increase.

Then model the best case, the worst case, and the realistic case. 

You don’t need a 17-tab spreadsheet (unless you’re like me and love that kind of stuff).

But you do need visibility. Because when you don’t build the spreadsheet, someone else controls the narrative. 

Here’s what I felt after I finished my spreadsheet: calm.

Not because solar was a slam dunk. It wasn’t. 

But because we understood the decision. We had clarity.

And that is what we want for you in your business. 

Having clarity lets you decide:

• “Yes, this is worth it.”
• “No, not yet.”
• “Yes, but we need to adjust timing.”

And that is what real financial leadership looks like.

In Case You Missed It 

Two new podcast episodes to support your financial clarity:

• Mastering Delegation: A Game Changer for Entrepreneurs with Renee Hastings → If you’re still handling everything in your business, this conversation is for you.
• Cash Flow Confessions: “I Made $1M in Revenue and Still Couldn’t Pay My Mortgage” with Leanne Ozaine → A real conversation about how being profitable doesn’t mean you have cash in the bank.