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Metrics that you need to track for your startup

Every day should always be like the first day that should be the attitude of the founder and management team.
Agility of the team on various metrics is essential to ensure that the company is on the right track.
Metrics, which are essential for existence, are Sales numbers, Revenues bottom line, cost per customer acquisition, Recurring expenditure and Burn rate to growth ratio. These are the metrics, which a startup needs to track on a month on month basis.
Lets understand how each and every metric is important sales number it is lifeline of the any company if sales numbers are going down the first indication that something is wrong numbers when fall continuously for a quarter is first indication that company is getting into trouble. The team has to have diligent work done to understand the reason
Revenue bottom line is very crucial parameters as this arises out of sales and directly proportional to it, this parameter will give you clarity how profitable is the sales and how is the pricing of the product or sales, if sales decrease then first thing team looks at is pricing should it offer any discounts to arrest sales once this is done the bottom line will show how profitable is the decision.
This is followed by cost per customer acquisition it is all about marketing advertising cost which is spent to acquire a customer and the cost of retaining the customer this will have direct impact on two things one being the cost of marketing and second being the impact of the marketing and usage of communication
Recurring expenditure is crucial component to ensure that you are not over spending on day to day expenses usually the recurring expenditure is majorly with salary and office expenditures increase in these is giving alarm that you are spending too much and more you spend you will have to earn more.
Burn rate to growth rate this metric gives you clarity on how much you are spending and by spending how much you are growing which can be either in market penetration or brand building, increase life span of customers and also need to have clarity is the burn generating enough growth.
These parameters are essential and need to be kept in track and monitored month on month basis, as these are the crucial components of growth of business.
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