BUSINESS SPEAK · CEO
CEO: Chief executive officer
The person who leads a company’s overall direction.
What it means
The CEO is the top decision-maker of a company. It is a role, not a number — but CEOs live by a handful of numbers: revenue, profit, cash and what the business is worth.
Where you’ll meet it
- In a small business the founder or owner is usually the CEO, often doing sales, hiring and the books too.
- A useful CEO habit: know your break-even point and how many months of cash you have left.
Worked example
Scenario: An owner-CEO has 40,000 in the bank, takes in 18,000 a month and spends 22,000 a month.
- Monthly shortfall: 22,000 − 18,000 = 4,000
- Runway: 40,000 ÷ 4,000 = 10
Answer: The business has about 10 months of cash left at this pace.