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9 Basic Financial and Analytics Metrics Every Startup Founder Should Know PDF
9 Basic Financial and Analytics Metrics Every Startup Founder Should Know PDF
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A startup cannot sustain value creation if its most basic and key metrics don’t add up.
In this ... [+] GETTY
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In this post, you will find nine essential metrics that you should
know about and measure. Your KPIs can change as your startup
grows. For instance, when you launch your startup, new
registrations or activations can be an important KPI to evaluate
the validation of your startup idea and viability of the solution in
addressing your customers’ needs. As your startup grows, your
focus may expand to KPIs like customer acquisition cost,
lifetime value, and churn rate.
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by first determining the customer value by multiplying the
average purchase value by the purchase frequency. Multiply the
average customer value by the average period (in months or
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If you know how much money you can make from a customer,
you will have a much clearer idea of how much money you
should invest in acquiring a new customer.
3. Churn Rate
4. Customer Retention
and they are happy with your product. 2. BUSINESS PLAN TEMPLATES ›
6. Return On Investment
7. Burn Rate
8. Revenue ADVERTISEMENT
9. Net Income
If you are starting a new venture and believe that it is still early
to start thinking and projecting the metrics above, remember
that you could build a product that your customers love and still
fail. A startup cannot sustain value creation if its most basic and
key metrics don’t add up. At every stage of your venture, as
much as you are thinking about your product's value
proposition, think about the financial health of your startup.
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