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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

This has led VC & entrepreneur bloggers alike to similar conclusions: start raising capital early and be careful about having too high of a burn rate because that lessens the amount of runway you have until you need more cash. But the hardest question to actually answer is, “What is the right burn rate for your company?”

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The 7 Key Metrics Every Business Owner Should Monitor

Up and Running

Depending on the type of business you operate, the metrics you monitor will differ. For example, if you have an eCommerce website , you’ll want to measure unique visitors, referrals, bounce rate, and similar. What Is Operating Margin? Net profit is your operating income minus taxes and interest. What Is Cash Burn Rate?

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Critical Key Performance Indicators (KPIs) for Founders

Up and Running

Many startups focus on growth (instead of profits) and often need to track KPIs that may be different from those used by established businesses: Burn rate : indicates the company’s negative cash flow or how quickly it’s spending money. This metric helps determine how much cash you need for operation and expansion.

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