Amazing work mastering financial statements! Now let's create your tech startup health dashboard - five simple numbers that tell you everything you need to know about your startup's survival and growth.
Think of this as your startup's vital signs monitor.
Engagement Message
Want to venture a guess of one vital sign for any tech startup?
Your financial statements show what happened in the past, but a health dashboard shows what's happening right now and predicts your future.
It's like the difference between a medical exam and real-time server monitoring during a product launch.
Engagement Message
Why might today's key numbers guide better decisions than last month's report?
Your dashboard needs just five numbers updated monthly: Revenue, Profit Margin, Customer Acquisition Cost, Customer Lifetime Value, and Cash Runway.
These five metrics work for any business - from a local bakery to a software company to a consulting firm.
Engagement Message
Which of these five metrics sounds most intimidating to you right now?
Revenue is simple: total money coming in each month. For subscription startups, track Monthly Recurring Revenue (MRR) to spot growth trends.
A SaaS app might see $12,000 MRR in January, $14,500 in February, showing 21% growth. Transaction-based apps track total monthly revenue.
Engagement Message
What pattern would you want to see in your monthly revenue numbers?
Profit Margin shows what percentage of revenue you keep as profit. Calculate it as: (Revenue - All Expenses) ÷ Revenue × 100.
If your mobile app makes $14,500 revenue and has $11,000 in expenses, your profit margin is 24%. That's excellent for early-stage tech!
Engagement Message
Is a 50% profit margin realistic for most tech startups? Why or why not?
