24 Startup KPIs That Matter

As a startup founder, you know that data is essential to making informed decisions. But with so many metrics to track, it can be hard to know which ones are the most important.

That's where KPIs come in. Key performance indicators (KPIs) are the metrics that you use to measure your company's progress towards its goals. By tracking the right KPIs, you can get a clear picture of how your startup is performing and make adjustments as needed.

In this blog post, we'll discuss 24 of the most important KPIs for startups. We'll also provide tips on how to track and interpret these metrics so that you can make the most of your data.

Here are the 24 startup KPIs that matter:

1. Gross margin. This metric measures the profit that your company makes on each sale after taking into account the cost of goods sold.
2. Cash burn. This metric measures the amount of money that your company is spending each month.
3. Churn. This metric measures the percentage of customers that you lose each month.
4. EBITDA margin. This metric measures the profit that your company makes after taking into account all of its expenses, including taxes.
5. Customer acquisition cost (CAC). This metric measures the amount of money that you spend to acquire each new customer.
6. Customer lifetime value (CLTV). This metric measures the total amount of money that a customer is expected to spend with your company over their lifetime.
7. EBITDA. This metric measures the profit that your company makes before taking into account taxes, interest, and depreciation.
8. Monthly recurring revenue (MRR). This metric measures the amount of money that your company receives each month from recurring subscriptions or payments.
9. Net dollar retention (NDR). This metric measures the percentage of revenue that you retain from your existing customers each month.
10. XPI. This metric measures the cross-sell and upsell activity of your sales team.
11. Annual recurring revenue (ARR). This metric measures the total amount of revenue that your company receives each year from recurring subscriptions or payments.
12. CAC payback. This metric measures the number of months it takes to recoup the cost of acquiring a new customer.
13. Sales attainment. This metric measures the percentage of sales goals that your team achieves.
14. Average contract value (ACV). This metric measures the average amount of money that your company receives from each contract.
15. Contraction revenue. This metric measures the amount of revenue that your company loses each month due to customer churn.
16. Expansion revenue. This metric measures the amount of revenue that your company generates from existing customers who increase their spending.
17. Budget attainment. This metric measures the percentage of budget that your company spends each month.
18. Average revenue per user (ARPU). This metric measures the average amount of money that your company receives from each user.
19. Net promoter score (NPS). This metric measures the loyalty of your customers.
20. Runway. This metric measures the amount of time that your company has before it runs out of money.
21. Gross profit. This metric measures the profit that your company makes after taking into account the cost of goods sold and operating expenses.
22. Revenue run rate. This metric measures the amount of revenue that your company would generate if its current growth rate were to continue for a year.
23. Cash out date. This metric measures the date on which your company will have enough cash to repay its debts and investors.
24. Operating expenses. This metric measures the total amount of money that your company spends each month on things like salaries, rent, and marketing.

How to track and interpret KPIs

Once you've identified the KPIs that are most important to your startup, you need to develop a system for tracking them. This may involve using a spreadsheet, a dedicated KPI tracking tool, or a combination of both.

Once you're tracking your KPIs, you need to take the time to interpret them. This means understanding what the numbers mean and how they relate to your company's goals. For example, if your churn rate is increasing, it may mean that you need to improve your customer support.

The importance of clean books

In order to accurately track and interpret your KPIs, it is essential to have clean books. This means that your financial records must be accurate, complete, and up-to-date. If your books are not clean, you will not be able to get an accurate picture of your company's financial health.

There are a number of things you can do to ensure that your books are clean, such as:

• Using a reliable accounting software program
• Reconciling your bank accounts on a regular basis
• Keeping all of your receipts and invoices organized
• Hiring a qualified bookkeeper

Fondo for startup bookkeeping

If you're a startup founder, you know that bookkeeping can be a daunting task. That's why Fondo is here to help. Fondo is an all-in-one accounting solution that is specifically designed for startups. With Fondo, you can get clean books in just a few clicks: get an instant quote for free here: https://app.tryfondo.com/onboarding

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By tracking and interpreting your KPIs, you can get a clear picture of how your startup is performing and make adjustments as needed. This will help you ensure that your company is on track to achieve its