Monitoring financial performance is crucial for sustaining a budget-conscious startup. Key metrics include:
Cash flow: Track the inflow and outflow of cash to ensure liquidity. Burn rate: Measure how quickly you are spending your available funds. Customer acquisition cost (CAC): Calculate the cost to acquire each customer to ensure marketing efforts are cost-effective. Lifetime value (LTV): Estimate the total revenue a customer will generate over their lifetime relationship with your business.