
Important Metrics in a Startup's Financial Statements - nanopisaroni
http://ttunguz.github.io/ten-financial-metrics
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manishsharan
I found this article to be very educational on start-up fundamentals ; where
can find a sample income statement spreadsheet which illustrates the concepts
and formalae in this article ?

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nathanbb
hey manishsharan, we have a collection of financial model templates within
foundersuite.com. They are completely free to use / download.

when you login, go to Corporate Docs then click on the folder "Models".
There's a SaaS model, an ad-revenue model, a subscription model and one or two
others.

hope that helps, Nathan

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simonswords82
Thanks for this Nathan, I hadn't heard of foundersuite.com before now - looks
like a great resource.

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swapnilsaykar
I think the most important metric for a startup should be around whether
customers are using a startup's product. For example, a company like DropBox
will be most interested in a metric like TB stored with Dropbox across all
customers. I believe as a startup this is the single most important metric
that you should care about.

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therealarmen
This is why I love software companies:

 _Revenue per employee. The beauty of software businesses is their leverage.
Google 's market cap is 40% larger than Walmart but it has only 2% the size of
Walmart's employee count._

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johnrob
The true measure of a company is how much profit it produces. Why does revenue
per employee matter?

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thwarted
It's a measure of efficiency. A company that takes 100 people to produce $100
of profit isn't as efficient as a company that produces $100 of profit with
one person.

How this ratio changes over time is a measure of scalability. If a one person
company goes from $100 profit to $200 profit after doubling the number of
people, that's more scalable than a 100 person company going from $100 profit
to $200 after doubling the number of people.

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ctrl
Great article, clear and to the point. Any suggested reading for one to dig
further?

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josephfung
[http://www.forentrepreneurs.com/saas-
metrics-2/](http://www.forentrepreneurs.com/saas-metrics-2/) is a good one for
SaaS startups.

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mathattack
I'd be interesting in finding more about the source of the sales quota #s. And
is that one time sales or lifetime revenue? (Since most new firms have a SAAS
model now)

