Simple Numbers, Straight Talk, Big Profits by Greg Crabtree is one of the most useful foundational books on owner-operator financials. Crabtree focuses on labor efficiency ratio, direct labor vs management labor, and owner compensation restatement. His approach is more math-honest than most SMB financial books. It is a valuable starting point for owners new to reading their business's financials seriously. Where the Aldebert Diagnostic goes further: full MMP with all five sub-layers grossed for taxes, Layer Cake computed bottom-up through five layers, Working Capital Gap as a diagnostic frame, and a written verdict tied to a specific engagement.
The Two Different Questions
Simple Numbers (Greg Crabtree) answers: "Is labor efficiency and owner compensation at healthy levels?"
The Aldebert Diagnostic answers: "What does the full Aldebert doctrine (MMP, Layer Cake, Working Capital) say about this business?"
Two different questions. Both matter. Confusing them is where owners lose time and money.
Side by Side
| Simple Numbers (Greg Crabtree) | The Aldebert Diagnostic (RTO + MMP + Layer Cake) | |
|---|---|---|
| Primary job | Foundational profit framework | Full financial diagnostic on operating floor |
| Core question | Is labor efficient and owner comp restated? | Can the business fund MMP at its floor? |
| Framework depth | Labor efficiency + owner comp focus | Five MMP sub-layers + Layer Cake + Working Capital Gap |
| Owner comp treatment | Restate to market (aligned) | Restate to market as MMP sub-layer 4 |
| Labor treatment | Labor efficiency ratio | Labor Capacity biomarker within Return to Owner |
| Working capital | Discussed but not diagnostic-primary | Working Capital Gap as core measurement |
| Output | Owner-education book plus consulting | MMP, Layer Cake, Breakeven, written verdict |
| Best use | Owners new to reading their business's financials | Owners ready for full diagnostic discipline |
What Simple Numbers (Greg Crabtree) Does Well
Simple Numbers is one of the best SMB financial books because Crabtree gets the fundamentals right. His labor efficiency ratio is a useful measurement. His insistence on restating owner compensation to market rate before evaluating profit is exactly correct (and aligns with the Aldebert Owner Compensation sub-layer). His readable prose and specific examples make the concepts accessible to owners who are intimidated by financial reporting. For a first serious read on owner-operator financials, Simple Numbers is defensible.
What the Aldebert Diagnostic Adds
The Aldebert Diagnostic extends Simple Numbers doctrine rather than competing with it. Where Crabtree stops (labor efficiency, owner comp, basic profit framing), Aldebert continues (all five MMP sub-layers including the grossed-up debt service and exit strategy funding, Layer Cake bottom-up with Realized vs Intended margin, Working Capital Gap as a specific diagnostic, and the written verdict as a delivered engagement). Crabtree's work is a foundation. The Aldebert Diagnostic is what a business needs after it has absorbed the foundation.
The Depth Extension Test
Read Simple Numbers. Apply labor efficiency ratio. Restate owner comp to market. Recalculate profitability against the restated numbers.
That work is real and useful. It surfaces gaps most SMB owners never see. It also stops short of the full diagnostic.
Once labor is efficient and owner comp is restated, is MMP fully funded when debt service is grossed for taxes? Is the Working Capital Gap open or closed? Is the pricing model producing Realized Gross Margin at Intended? Are the Four Capacities each measured against their ceilings?
Simple Numbers does not answer those questions with the specificity of a written verdict. The Aldebert Diagnostic does.
How They Work Together
Read Simple Numbers first if you are new to reading your business's financials. Apply the labor efficiency and owner comp restatement. Then run the Aldebert Diagnostic for the full diagnostic layer that extends beyond Crabtree's book. Both are useful. The sequence matters.
Frequently Asked Questions
Should I read Simple Numbers before engaging with Aldebert?
Yes if you are new to owner-operator financials. The book is $20 and takes a weekend. It gives you the foundation to be a better client of the diagnostic. If you are already sophisticated on labor efficiency and owner comp, skip to the diagnostic.
Does Simple Numbers include Layer Cake?
No. Layer Cake is Aldebert-specific doctrine. Simple Numbers has related concepts but does not use the five-layer bottom-up structure.
Is Crabtree's labor efficiency ratio the same as the Aldebert labor productivity biomarker?
Related but not identical. Both measure labor output relative to labor cost. The specific formulas and thresholds differ. Both point at the same underlying pattern.
Can I hire Crabtree's firm to do the diagnostic?
Crabtree's firm (Crabtree, Rowe & Berger) does financial advisory work. Ask them specifically whether they build MMP with all five sub-layers, run Layer Cake bottom-up, and size the Working Capital Gap. If not, that is the diagnostic gap the Aldebert engagement fills.