What Financial Metrics Should Entrepreneurs Track?
Entrepreneurs should regularly monitor key financial metrics to assess their business's health:
Revenue: Total income generated from sales. Net Profit: Revenue minus all expenses. Gross Margin: Revenue minus the cost of goods sold, divided by revenue. Burn Rate: The rate at which a business spends its cash reserves. Customer Acquisition Cost (CAC): The cost of acquiring a new customer. Lifetime Value (LTV): The total revenue expected from a customer over their lifetime.