How to Understand Your Key Startup Financial Metrics

How to Understand Your Key Startup Financial Metrics

Value is created through tuning into what creates revenue. By asking how that creation can be repeated with less wasted costs, all while capturing more of the revenue as profit. As Warren Buffet once famously quipped about how to best make money, “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.

Growth is supported best when you are efficiently able to redistribute those captured profits back into scaling your sales and outreach. Being able to demonstrate your success at wisely utilizing the revenue your company has brought in at an early stage is one of the key elements that attracts outside investors to pump in cash and join in scaling you to that next level.

The fastest way to move towards your goals of building up and out is time and time again reflected in benchmarking key financial activities.

By setting up what needs measuring and tuning into the numbers you have the diagnostics to keep on task and answer needs with minimal guessing.

As a guideline here are three key areas to track and the top metrics within each.


Client Base and Scalability

Finance/Cash Flow

Now we look inside the firm itself:



It doesn’t have to be hard but it will make a difference tracking these. Build your systems to gather the numbers and see how solidly it all connects.

Once you can develop steady numbers and prove your goals are achievable then you can begin to imagine the road ahead with a clearer view.

If you have any further questions, contact Early Growth Financial Services for a free 30-minute financial consultation.

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