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10 KPIs every CEO should know


KPIs every CEO should know

Click the image above to read the complete guide


Every month, I work with dozens of CEOs who are trying to understand what is happening with their business


The best CEOs that I work with have quick insight into what matters, allowing them to act FAST


1️⃣ Cash Burn


Cash is king - your whole business revolves around it


Understanding how much your spending, and how that spend will be affected by certain actions, can add tremendous value to your decision making


2️⃣ Cash Out Date


Startups typically post losses every month with the intention of raising capital at higher valuations


But what happens if you are taken by surprise?

you can be left with a real delicate situation…


Causing you to have to raise / borrow capital at unfavorable terms

Or even worse…you may go out of business 😱


3️⃣ Cash in the bank


Noticing a trend here? Cash is king!


Understand everything there is about it


4️⃣ Monthly Recurring Revenue


After you master everything there is to know about your cash, it’s time to master everything there is to know about what contributes / withdraws from that cash


Your sales is what brings cash in the door, and is often times what investors value the most


Understand not only your Monthly Recurring Revenue, but also how much new MRR, Lost MRR, and Expansion / Contraction MRR taking place each month


5️⃣ Monthly Headcount Expense


Your headcount expense will be the biggest expense each month, and the hardest to control - get a grip on it before it’s too late!


6️⃣ Budget Attainment


How do you know if your forecast is credible?


By preparing a budget vs actuals each month


From there, you can see where you were on point, and when you need to reforecast with different assumptions


7️⃣ Gross Margin


Your Gross Profit is an important metric - it allows you to understand how much money you can invest in your business after you deliver your revenue


You can be making a billion dollars in revenue...if it costs you a billion + 1 dollars to generate that, you don’t have a business


8️⃣ Churn


Churn is like a virus that can spread if not treated quickly


Find out why your customers are churning, and do everything you can to prevent more of it


9️⃣ Customer Acquisition Cost (CAC)


Sales is cool…but not if it takes you more money in Sales & Marketing to acquire a customer


Once you understand your CAC, you can do all sorts of cool analysis like CAC Payback, IE calculating how long it takes you to earn back your CAC


🔟 Lifetime Value


Similar to the above, it’s not enough to understand how much you’re earning


When you understand how much in lifetime value customers are worth, you can invest in the right Sales & Marketing channels


Those are my top 10 KPIs every CEO should know

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