Having a startup business can be too risky. It survives in a manner where everything has to be budgeted carefully. The resources it needs to grow and to survive is really shorter than what you’re expecting it to be.
Being a visionary entrepreneur can be very good but also can be perilous because your passion might interfere in fulfilling your vision.
But the question here is, how can you get all the important information on deciding how is the best way to spend the scarce resources your starup business have?
Well, the answer here is to build a concrete outline on what are the things you want to follow or keep track on. Here are five things to track on:
The cash- burn rate is everything about how long before your startup will empty out its cash resources. It lists all the details on how much cash you have available or the bills that eats up most of your cash reservoir. This also tells you on when and where to settle those expenses.
If the cash-burn rate part tells you that you still have a year’s worth of cash, well, the business is still in good shape. You still have a lot of time, 11 months to be precise before you get nervous and ran out of funds. If there’s less than 3 months, well, you have to think of other means on extending the cash resources you have.
This part of the dashboard maps out how excellent you are in getting funds for your startup. This gives you a measurement of your goals, the cash you receive from other resources such as customers, suppliers and other people around you.
Hiring- activity meter.
Well, the name says it all. This meter lets you know whether you are building a team that investors would consider as the A team. By examining the qualifications such as the job area like engineering, sales and manufacturing, it gives you out a clear idea on the numbers of the excellent employees you’ve hired so far and also the number to whom you offered your services and the number you are interviewing.
This area here monitors and tracks the growth rate of the number of the customers you have and the revenue you are getting. It gives you a detailed number of users for the product and how frequently they use it, how many of them are giving positive comments and even referring your product to other potential clients in their network. This also tells you how many of the customers are actually paying for it and how much they shell out.
This part of the dashboard gives you an idea on whether you are on track or behind schedule. Of course, running a startup business is really crucial when it comes to time. Every single step that your business is behind, well, the more crucial it gets for your business. This details a clear timeline for your products, tells you if the team is meeting the goals set and if not, the things that are stopping them from doing so.
Next read… How to improve your chances running a successful startup?
Article contributed by Startup Jobs Asia‘s Team.
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