Startups should keep track of several key financial metrics to gauge their financial health:
Burn Rate: The rate at which a startup spends its capital. Runway: The amount of time a startup can operate before it runs out of cash. Gross Margin: The difference between revenue and the cost of goods sold, expressed as a percentage of revenue. Customer Acquisition Cost (CAC): The cost associated with acquiring a new customer. Customer Lifetime Value (CLTV): The total revenue a business can reasonably expect from a single customer account.