The finance metrics that matter most to startups | The Startup Magazine

You don’t need to be an accountant to start a company but you should become intimate with key accounting metrics.  Lack of financial literacy is the greatest threat to a global surge in entrepreneurship.  Most companies fail because their founders had little or no financial acumen.

Such was almost the case with my first company.  Pockets filled with seed money, I worked hard on creating nice products and chasing down new customers only to be in deep trouble within a year.  The only financial focus I took was to deposit cheques and pay bills.  The only metric I looked at was my bank balance and as money ran dry.  The less I had in my account the more I looked at it. The disaster was avoided only after I brought in a great CFO and took classes on accounting.

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