Foundational metrics every business should care about

In the world of startups, understanding and tracking key performance indicators (KPIs) is crucial for growth and success. These five foundational metrics are relevant to every startup from the moment they begin their operations: 1) Customer Acquisition Cost (CAC), which measures the total budget spent on acquiring a new customer; 2) Churn and Retention Rate, which calculates the percentage of customers leaving or returning to your platform; 3) Monthly Recurring Revenue (MRR), which projects anticipated monthly revenue; 4) Burn Rate, which indicates how fast the business is spending money; and 5) Cash Runway, which predicts how long a startup can continue before running out of cash. By focusing on these metrics, startups can make strategic decisions, manage their finances effectively, and attract potential investors.