Let’s face it: finance, supply chain, and ops are rarely the things that get founders out of bed in the morning.

But as someone who’s spent my career helping brands scale from seed to success—including my work at Briogeo—I can tell you this: your financials are not just numbers on a spreadsheet. They are the clearest, most honest scoreboard for your business. They tell you exactly how you’re doing, what’s working, what’s broken—and what’s coming next.

And if you know how to read them, they can help you avoid the most dangerous pitfalls and make the smartest moves possible.

Let’s break it down.

1. Your Financial Statements Don’t Lie

You are what your numbers say you are. That may sound harsh, but it’s also empowering—because when you understand your numbers, you can do something about them.

Here’s what you need to know:

  • Income Statement: Tracks your revenue, costs, and profits over time. It tells you if you’re winning—or burning money.
  • Balance Sheet: Shows what you own (cash, inventory, receivables) and owe (payables, loans) in a single snapshot.
  • Cash Flow Statement: Your business’s checkbook. The clearest view into what’s coming in, what’s going out, and whether your operations are sustainable.

If you’re not looking at all three regularly, you’re flying blind​.

2. Don’t Confuse Revenue with Reality

It’s easy to get excited about sales. But sales aren’t success unless the cash is actually hitting your account.

If you’re selling through retailers, those payments might take 30–60+ days. And if you’re buying inventory upfront, you could be bleeding cash even as your revenue looks “great” on paper.

Always ask:
Do I know my true burn rate? Do I have at least 6 months of cash runway?

3. Master the Three Most Expensive Lines in Your P&L

There are three expenses that will make or break your business:

  • Cost of Goods Sold (COGS)
  • Marketing spend
  • Team & payroll

Everything else is noise.

Whether you’re optimizing for growth or profitability, these three levers will determine your financial future. Know what you’re prioritizing—and why​.

4. Retail vs. DTC: Know the Economics Before You Scale

Omnichannel sounds sexy, but here’s what most founders miss:

  • Retail is a pay-to-play world with tight margins, high overhead, and complex contracts.
  • DTC offers more control—but customer acquisition costs (CACs) can crush your margins if you don’t have strong retention.

Before you sign with a major retailer, model it out. Understand the cost, marketing support required, and reorder risk. Know what it will take to win​.

5. Inventory Can Kill You—Or Keep You Alive

Forecasting inventory is equal parts science and art. Too little, and you miss sales. Too much, and you choke your cash.

Stephen’s tips:

  • Always build safety stock for top SKUs.
  • Be conservative about MOQ-driven purchases.
  • Model demand from both DTC and retail (but don’t blindly trust retailer forecasts)​

6. Avoid These Expensive Mistakes

Here are the most common (and costly) pitfalls I see:

  • Hiring too fast—and hiring the wrong people.
  • Scaling before the fundamentals (like margins or CACs) are dialed.
  • Not negotiating better terms as you grow (from suppliers, agencies, or retailers).
  • Over-investing in offices, fancy software, or agencies that have passed their peak value​

7. Know When to Invest—and When to Pull Back

Smart founders know when to be frugal and when to go all-in.
Ask yourself:

  • Will this hire or investment generate revenue or efficiency within 3–6 months?
  • Have I tested this channel, product, or partner enough to justify scaling?
  • Am I holding back out of fear—or pushing forward without a solid foundation?

The goal is calculated acceleration, not reckless growth​.

8. Final Thought: You Don’t Need to Be a CFO—But You Do Need to Think Like One

Here’s what I’d challenge every founder reading this to ask:

  1. Do I know what’s coming financially over the next 6 months?
  2. Are the people I work with helping me win—or slowing me down?
  3. Am I sitting on investments I should be making?

When you treat finance like a lens for better decision-making—not a chore—you’ll be able to grow faster, smarter, and more sustainably.

And remember: You don’t have to do it all yourself. But you do have to care.

Stephen Lasky is the CFO of Briogeo and former CFO of Madison Reed, with over 20 years of experience scaling high-growth CPG businesses.