What Numbers Should a Startup Business Focus On?

  • January 23, 2020
  • By Sarah Solomon

Is your business a startup? Are you looking to open your own business in the future?  Hundreds of startups print out financial statements, look them over, and assume all as well.  However, the numbers that matter for startups are extremely different than those of established companies.  Why is that? Startups are battling time. Businesses will not be able to operate if they are not profiting immediately, or obtaining capital to offset start up costs. Startups need to be weary of the numbers they should actually be focusing on, and go from there.  

REIL is going to discuss the numbers startup businesses should be fixated on below. 


CAC, also known as, the cost of customer acquisition, is a significant number for start-up businesses.  The CAC enables you to figure out how much you need to spend, in order to acquire customers. This allows you to designate budgets for your marketing program and predict revenues based on your CAC.  Tracking the CAC can also help your business identify which platforms are the most cost-effective for your business.  

If you are a startup business and would like to start calculating your CAC, don’t fret.  It can be very easy. To calculate your CAC, tally all of your marketing and sales expenses for a given time period.  Depending on the number of new customers you achieved, divide that number by the overall cost of your marketing/ads. That final value is your CAC. 

Loyal Customers 

Businesses continue to run because of the loyalty of their customers.  Repeat customers are the lifeline of any business. Keep existing customers happy and make an effort for them to come back.  Keep track of how many of your customers can be considered a “lifetime value customer.” These are profits you can depend on.  Increasing repeat sales from existing customers is a great safety net and a great way to decrease costs for promotion at your business. 

Conversation Rates 

How many times have you walked into a store and not bought anything?  Or simply added an item to your cart online, to forget about it later?  Ultimately, as a customer, you failed to complete a purchase. This is unfortunate for the business as people completing a purchase is of prime importance.  Why didn’t that person make a purchase? Can you do something to alter your business conversion rate?  

Keeping track of your business’s conversion rate is easy.  Simply divide your number of completed sales, by your overall number of leads. Being cognizant of your conversion rate enables your business to understand where it needs to improve and how many leads you need to reach profitability. 

REIL Advice 

The numbers a startup business needs to be aware of are completely different from that of an established business.  The beginning is essential, as you are growing the foundation of your business. If you need any advice or are in need of funds after 6 months in business, fill out REIL’s commitment-free application on our site.  REIL is always happy to help! 

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