Founders are surrounded by dashboards, yet many still cannot answer simple questions about their business in a board meeting. More data is rarely the answer. The right five numbers usually are.
These are the numbers we ask every founder to know without opening a laptop.
1. Cash runway
How many months can you operate at today's spending if no new money comes in? Check it monthly. Under twelve months, it should shape every big decision.
2. Gross margin
What is left from each sale after the direct cost of delivering it? Low or falling margin means growth will cost more cash, not less.
3. Customer acquisition cost
What does it cost, in marketing and sales, to win one new customer? Compare it with what a customer is worth over time. If winning a customer costs more than they bring in, growing faster makes the problem bigger.
4. Retention
What share of customers or revenue is still with you after twelve months? Strong retention makes every other number easier. Weak retention means you are refilling a leaking bucket.
5. Pipeline coverage
How much qualified pipeline do you have compared with next quarter's sales target? Most teams need about three times the target to hit it with confidence.
Below two times: focus on new pipeline now.
Two to three times: watch conversion closely.
Above three times: focus on closing and delivery.
The short version
Runway, gross margin, acquisition cost, retention and pipeline coverage. Know them by heart, review them monthly and let them guide your decisions.
