Financial Metrics and KPIs

For half a decade, I thought I was tracking the right metrics I was wrong Revenue. Growth rate. ROAS. Conversion rate. New customers. Repeat revenue All important But they could tell me the business was growing without telling me whether that growth was making the company more valuable You can buy more traffic, discount more aggressively, and acquire less-profitable customers while the top line keeps going up The business gets bigger That doesn’t automatically mean its equity value does A stronger Brand should make future revenue easier to earn, more profitable, and less dependent on buying every sale Here are the 11 metrics I wish I’d started tracking sooner, framed as questions: 1. Are branded organic searches growing faster than revenue? 2. Are contribution dollars and contribution margin going up? Contribution Dollars = Revenue - variable costs like COGS, marketing, and shipping 3. Is direct and branded search revenue growing faster than overall revenue? 4. Is the gap between gross and net sales shrinking? This signals less reliance on discounts and fewer returns 5. Are 30, 60, and 90-day incremental LTV going up, excluding the first purchase? 6. Is reach growing as fast as—or faster than—revenue? 7. Have your worst days gotten better? One way to measure this: is the average of your 30 lowest-revenue days trending up? 8. For organic search, is revenue per session rising while sessions are growing or stable? 9. Is your share of branded organic searches growing versus your competitive set—at both the Brand and category level? 10. Is Baseline Revenue growing, both in dollars and as a percentage of total revenue? I define Baseline Revenue as revenue from direct traffic, organic search, and organic social referrals It’s imperfect. But if it’s rising in dollars AND as a percentage of revenue, good things are generally happening 11. Is Baseline Revenue per branded organic search going up? Branded searches are an imperfect proxy for the Brand you’re building. Baseline Revenue per search shows whether you’re monetizing it better If searches are soaring but Baseline Revenue per search isn’t, that’s something to audit — A few caveats: None of these metrics are perfect. You can game any of them They’re also mostly leading indicators—not the ultimate company scorecard The ultimate outcome is more operating profit and net cash over time The right metrics also change with the company’s stage, economics, and strategy. A five-month-old company shouldn’t use the same scorecard as a 100-year-old company But if you can honestly answer “yes” to most of these questions, there’s a good chance the quality of your growth is improving And that gives you a better chance of building a more valuable company—not just a bigger one Question for the people of the internet: What else do you track to understand whether growth is increasing the quality and equity value of the business?

The Ultimate Board Meeting Pack Checklist I've sat through countless board meetings in my career working with fast growing companies... and if there's one thing I've learned, your board deck serves a critical purpose - empowering your board to understand your company's financial health, performance, and direction. So what makes a great board pack? Let me break it down for you 👇 ➡️ EXECUTIVE SUMMARY Your exec summary needs to pack a punch with just one page. I always include: -A snapshot of company performance with key wins -Any concerns that need immediate attention -Strategic updates in bullet-point format -High-level financial highlights No fluff, just what matters most. Board members should get the full picture in under 30 seconds. ➡️ FINANCIAL OVERVIEW This is where the numbers tell their story: -P&L Summary showing actuals vs budget/forecast (MTD, QTD, YTD) -Cash position with current balance, burn rate, runway -Balance sheet highlights focusing on key shifts in assets/liabilities When I present these, I always color-code variances so problems jump off the page. ➡️ VARIANCE ANALYSIS Don't just show the numbers, explain them: Focus on top 3-5 significant deviations from budget -Get to the root causes behind variances -Include action items to address issues -Use visuals like bar charts to highlight the biggest gaps My favorite approach? Waterfall charts that show the journey from forecast to actual. ➡️ OPERATIONAL METRICS Numbers beyond the financials matter just as much: -Customer metrics (growth, churn, retention, NRR/GRR) -Sales pipeline and conversion stats -Product/feature engagement for tech companies I like to show 6-month trends for these metrics so the board can spot patterns, not just points. ➡️ STRATEGIC INITIATIVES & ROADMAP The board wants to know where you're going: -Status updates on key projects or product launches -Hiring progress versus the plan -Strategic priorities for next quarter Use simple red/yellow/green indicators to show status at a glance. ➡️ RISKS & CHALLENGES Every company has risk. It's how you communicate & plan for that risks that makes all teh difference in the world -Outline key risks across financial, operational, legal areas -Share your mitigation plans for each -Be transparent - boards value this more than sugar-coating ➡️ ASK FROM THE BOARD Be crystal clear about what you need: -Funding requirements -Strategic advice needs -Hiring referrals -Feedback on potential pivots ➡️ APPENDIX Keep the meeting focused, but have backup: -Detailed financials (P&L, BS, CF) -Org chart with key hires highlighted -Detailed KPIs for those who want to dig deeper === That's my complete board pack checklist - but everyone does it differently. What's your approach to board packs? What sections do you find most valuable? Join the discussion in the comments below 👇

I always look at these 4 metrics to find potential winners: 👇 (Especially true for B2B startups) 1️⃣ Chunky ACV (Annual Contract Value) 5-6 figures per contract. Long duration, like 2-3 years. This means significant growth per client over time and a high chance of attractive payback in < 1 year. 2️⃣ Shorter Sales Cycles Ideally less than 4 months. Swift deal closures—less time, more action. 3️⃣ High Margins Think 85% gross margins. More top-line reaching the bottom line, and profitability becomes inevitable with well-managed expenses. 4️⃣ Low Churn Less churn = steady recurring revenue Less time and money are needed to snag new clients. For B2B Enterprise monthly user churn: 🔸 <0.5% is great. 🔸 1-2% is good. These are gears working to create strong economics. They stack up, generate internal capital, and catalyse scale. We use these key numbers as a litmus test to find resilient businesses. When done right, B2B tech offers investors attractive returns adjusted to risk. P.S. These metrics are usually present in the post-seed stage. If you're in the super early investing game, they might not be fully available yet.

Do you know the top 10 KPIs VCs care about across stages? Aumni’s latest analysis looks at over 10,000 data points across portfolio companies of all stages to reveal top metrics sought by VCs. It has been found that 1. Revenue, net burn rate, FT headcount, and gross margin are frequently requested  2. Most venture firms request 6-9 metrics per quarter from each PortCo  3. Cash ranks high in the early stages but becomes less critical in the later stages 4. Operational metrics take up 50% of the top ten list at Series D+ Point to note: 1. You can see that the two cash metrics in the top ten list (cash-on-hand and cash runway) are requested far less often across stages. Both metrics fell from an average combined ranking of 3.5 out of 10 in the seed stage to scarcely staying in the top ten by Series D+. 2. As expected, metrics that focus on operational efficiency are requested more frequently later in the startup lifecycle.   Gross margin, total OpEx, EBIT, bookings, and debt balance are frequently requested metrics as companies enter growth and exit stages. Please check the comment section for the detailed note by Aumni. ~~~~~ ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Fazlur Shah for more content like this. #startups #entrepreneurship #venturecapital #investing

Product managers should stop thinking about revenue. Not because revenue doesn’t matter—but because it’s the wrong thing to focus on daily. Revenue is a lagging metric. By the time you see a change, the real work—the decisions, the bets, the execution—happened months ago. It’s too late. If you were hiring a PM, would you rather hear: 📉 "We improved revenue by 10%." 📈 "We identified Analytics as the key wedge driving upgrades. We doubled down on improving it—boosting adoption by 40% and expansion revenue by 15%." Great PMs don’t chase revenue. They focus on the inputs that drive it. Here’s how to turn leading indicators into business impact: 💰 To drive new customer revenue, optimize conversion rates. → Reduce friction in sign-up, onboarding, or checkout. → Example: Removing unnecessary form fields boosted conversions by 20%. 🚀 To increase adoption, improve onboarding & time-to-value. → Get users to their "aha moment" faster. → Example: Users who invited 3 teammates in Week 1 retained 50% better—so we optimized for that. 🔄 To improve retention, reinforce core product habits. → Focus on the key features that keep customers engaged long-term. → Example: Users who created recurring reports stayed 3x longer—so we pushed for that habit earlier. 📈 To unlock expansion revenue, drive engagement in high-value features. → Double down on features that act as a wedge for upgrades. → Example: Power users of Analytics were 3x more likely to upgrade—so we drove a 40% increase in adoption. Final thought: PMs who focus on leading indicators don’t just measure impact—they create it. -- 👋 I’m Ron Yang, a product leader and advisor. Follow me for insights on product leadership + strategy.

𝟴𝟬% 𝗼𝗳 𝗗𝟮𝗖 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀 𝗧𝗿𝗮𝗰𝗸 𝘁𝗵𝗲 𝗪𝗿𝗼𝗻𝗴 𝗡𝘂𝗺𝗯𝗲𝗿𝘀. 𝗛𝗲𝗿𝗲 𝗔𝗿𝗲 𝘁𝗵𝗲 𝟱 𝗧𝗵𝗮𝘁 𝗔𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗠𝗮𝘁𝘁𝗲𝗿. Most D2C founders watch revenue, orders, and ad spend. All useless if you're running out of cash. Here are the only 5 numbers that actually separate surviving brands from dying ones. 𝗕𝗮𝗻𝗸 𝗕𝗮𝗹𝗮𝗻𝗰𝗲 (𝗡𝗼𝘁 𝗥𝗲𝘃𝗲𝗻𝘂𝗲) Check actual cash you can withdraw today. Not "revenue generated." Not "expected payments from Amazon/Flipkart in 15 days." Liquid cash. If this drops 3 weeks straight, you're in crisis mode. 𝗖𝗮𝘀𝗵 𝗥𝘂𝗻𝘄𝗮𝘆 𝗶𝗻 𝗗𝗮𝘆𝘀 Cash in bank ÷ monthly burn rate = days until you're broke. Under 90 days? Stop all new initiatives and fix cash flow now. I've seen brands hit ₹50 lakh monthly revenue and shut down because runway hit 30 days. 𝗥𝗲𝗮𝗹 𝗖𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 𝗠𝗮𝗿𝗴𝗶𝗻 Revenue minus product cost, shipping, payment gateway fees, packaging, COD charges, returns, and failed deliveries. Not "gross margin." Real margin after everything goes wrong. If it's below 25%, you can't afford to grow. 𝗥𝗲𝗽𝗲𝗮𝘁 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗥𝗮𝘁𝗲 (𝟵𝟬-𝗗𝗮𝘆 𝗪𝗶𝗻𝗱𝗼𝘄) Of customers who bought 90 days ago, what % bought again? Below 20%? You're renting customers at high CAC, not building a business. Brands with 30%+ repeat rates survive downturns. Brands below 15% don't. 𝗖𝗔𝗖 𝘃𝘀. 𝗙𝗶𝗿𝘀𝘁-𝗢𝗿𝗱𝗲𝗿 𝗠𝗮𝗿𝗴𝗶𝗻 Customer acquisition cost versus actual margin on first order. If CAC is ₹1,200 and first-order margin is ₹800, you lose ₹400 per customer. Growth is burning money, not building equity. Track these 5 every single morning. Not weekly. Not "when you have time." Daily. These numbers don't lie, and they warn you weeks before disaster hits. #hyperscale #D2C #cashflow #metrics #advice

I've built 3 companies from the ground up. Here's what I actually track. Most founders drown in data. They measure everything and understand nothing. I track 12 metrics. That's it. 1. Start with gross margin. If you can't make money on each sale, volume won't save you. Healthy margins fund growth. 2. Operating cash flow tells you if the business can fund itself. Cash is oxygen. Without it, nothing else matters. 3. EBITDA measures profitability at scale. It's how investors compare businesses and how you know if you're truly profitable. 4. Cash runway is simple math. How many months before you run out? Balance growth with survival. 5. Customer acquisition cost shows what it takes to win a customer. If you don't know this number, you're flying blind. 6. Customer lifetime value is the flip side. How much does each customer generate over the relationship? 7. The LTV:CAC ratio validates your growth strategy. Rule of thumb, above 3 is strong. Below that, you're burning cash. 8. Customer retention rate measures loyalty. High churn means weak product-market fit. Period. 9. Revenue growth rate shows momentum. Investors and buyers look at this first. 10. Net revenue retention shows if you're growing from existing customers. Over 100% means expansion covers churn. 11. Churn rate signals problems early. Rising churn is a red flag you can't ignore. 12. Burn multiple reveals capital efficiency. How much cash are you burning for every dollar of new revenue? I learned these across 40 years and 3 exits. Some the hard way. Track these 12 first. Ignore the rest.

We didn’t fail because the product sucked. We failed because we were looking at the wrong numbers. One of our best-looking product launches quietly started leaking cash within 3 months. Sales were good. Reviews were solid. Site traffic was up. But under the surface? Margins shrinking Return rates rising Repeat purchases… flat Turns out we were too busy watching vanity metrics the ones that make you feel good in a pitch deck and ignoring the ones that actually shape the health of the business. So we rebuilt our dashboard. And I now swear by these 4 KPIs 👇 1. Product-Specific NPS Not general CSAT. Not site feedback. We track NPS per product, every 90 days. If it dips, we investigate. FAST. 2. Warranty Claims per 1,000 Units It’s the quietest indicator of product quality. We aim for <5%. Above that, your cost of support and margin pain kicks in. 3. 60-Day Repurchase Rate 20–40% is solid in most DTC categories. We’ve seen how this drives word-of-mouth, not just retention. If people love it, they’ll buy again (or send friends). 4. Checkout Completion % by Device This helped us uncover a massive drop-off on mobile. Fixing that UX bump raised conversions by 14% in a week. These aren’t always the sexiest metrics. But they tell the truth. And when you're scaling, the truth is more useful than dopamine. What 3–4 KPIs do you actually look at every week? ♻️Repost if you think more founders should obsess over the right metrics, not just the pretty ones.

Most #CEOs are tracking the wrong numbers. Revenue looks good. Profit is growing. Customer satisfaction is improving. Great. 👉 But these numbers only tell you what has already happened. If you want to build a business that's ready for the future, you need to track the #metrics that help you make better #decisions today. Here are 5 KPIs every CEO should review every week: 1. 𝐃𝐚𝐭𝐚 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧 𝐑𝐚𝐭𝐞 How many business decisions are backed by data instead of assumptions? The higher this number, the smarter your organization becomes. 2. 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐋𝐢𝐟𝐞𝐭𝐢𝐦𝐞 𝐕𝐚𝐥𝐮𝐞 𝐛𝐲 𝐀𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 𝐂𝐡𝐚𝐧𝐧𝐞𝐥 Not every customer is equally valuable. Some channels bring customers who stay longer, spend more, and become your biggest advocates. Focus on quality, not just acquisition cost. 3. 𝐏𝐫𝐞𝐝𝐢𝐜𝐭𝐢𝐯𝐞 𝐀𝐜𝐜𝐮𝐫𝐚𝐜𝐲 How close are your forecasts to reality? If your sales, demand, or revenue predictions are consistently inaccurate, your planning needs attention. 4. 𝐓𝐢𝐦𝐞-𝐭𝐨-𝐈𝐧𝐬𝐢𝐠𝐡𝐭 How quickly can your team answer an important business question with reliable data? Waiting weeks for insights means missing opportunities. Fast decisions create competitive advantage. 5. 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐩𝐞𝐫 𝐃𝐚𝐭𝐚 𝐈𝐧𝐬𝐢𝐠𝐡𝐭 Insights only matter when they lead to action. Measure how much revenue is generated or cost is saved from the insights your analytics team delivers. This changes analytics from a reporting function into a growth engine. The question isn't whether you're tracking KPIs. It's whether you're tracking the ones that actually move your business forward. 👉 Which of these five KPIs does your organization struggle to measure today? #Leadership #CEO #BusinessStrategy #DataAnalytics #BusinessIntelligence #DataDriven #Growth #KPIs

🚀 Investors don’t just want to know where you’ve been—they’re focused on where you’re going. They’re looking for a clear roadmap, not just a rearview mirror. To keep them engaged and confident in your vision, your investor updates need to go beyond the basics. Here’s what you REALLY need to include to paint a full picture of your company’s future: 🩺 Financial Health: Investors want to see that you're managing resources wisely and planning for sustainable growth. ✅ Monthly Revenue: Your bread and butter—how much are you generating? This is the clearest indicator of your business performance. ✅ Month-over-Month Growth: Is your revenue scaling consistently? Steady growth signals market traction and operational success. ✅ Monthly Burn Rate: What are your monthly expenses? Keeping burn rate under control is critical for long-term success. ✅ Runway: How long can you keep going with current cash in hand? Demonstrates how prepared you are for the road ahead. ✅ Gross Margin: How much profit are you retaining after covering the cost of goods sold? This metric shows how efficiently you’re managing production costs. ✅ Customer Acquisition Cost (CAC): What does it cost to acquire a new customer? Investors want to know if your sales and marketing spend is producing healthy returns. 📈 Traction & Growth: Numbers are great, but investors also want to see momentum and strategic wins. ✅ Headcount: Is your team growing in line with your company’s expansion? Team size can be a reflection of scaling operations. ✅ Notable Product Releases: Keep investors excited about product innovation. Share breakthroughs that reflect your competitive edge. ✅ Market Engagement: How many users or customers are actively engaged? Highlight user growth, but also share insights on retention and customer satisfaction. Investors want to see not just growth, but sticky growth. ✅ Partnerships & Strategic Collaborations: Highlight any major partnerships, alliances, or collaborations that could drive future growth. Investors love seeing how your ecosystem is expanding. ✅ Pipeline of Deals or Opportunities: Show that there’s momentum in your sales pipeline. How many prospective deals are in the works, and how close are they to closing? This provides a forward-looking view of revenue potential. ⚠️ Pro Tip: If you're in a highly technical or deep tech business, write your investor updates in clear, non-technical language. Remember, updates often go beyond investors and reach advisors and strategic stakeholders. Simplify the complex to ensure everyone understands your key points and vision. Keeping investors informed is not just about transparency; it’s about building trust and enthusiasm for your company’s future. What else do you include in your investor updates? Let’s discuss in the comments! 💬 #InvestorUpdates #StartUpGrowth #FinancialHealth #Traction #BusinessGrowth #Leadership #DeepTech #ClearCommunication