These four SaaS metrics relate to finding product-market fit and are especially useful for Seed-stage SaaS startups.
Important efficiency metrics for SaaS startups include Sales Efficiency (aka the Magic Number), Human Capital Efficiency, and Capital Efficiency.
Customer Success costs are a drag on a startup’s Gross Margins, but much less of a drag than losing customers.
Revenue modeling is of particular importance for SaaS startups. The best time to start? Before your startup even has revenue.
To understand a SaaS startup’s churn rate, you need to calculate churn as a percentage of customers up for renewal, not total customers.
To truly capture the power of scenario analysis, you have to run the mental exercise of putting yourself in that moment.
The answer to how much ARR your startup needs for your next funding round can be found in your Capital Efficiency Ratio.
Early-stage startups face a particular set of risks. The four main areas of startup risk exposure are: team, product, financial, and legal.
Every startup needs three types of financial plans: a Long-range Financial Plan, an Annual Financial Plan, and an Intra-year Forecast.
Debbie Rosler, CFO for startups, lays out a simple approach for early-stage startups to set their annual financial plan.