Investor Connect Podcast

Metrics for a Downturn Economy

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In a downturn economy, metrics can help you make decisions about your business.

Here are some key metrics to consider:

Net burn rate - measures the actual cash lost in a single month. 

To calculate, subtract the total revenue from the total amount of money spent month over month.

Use this to measure your cash runway by dividing the cash in the bank by net burn rate to tell you how many months you have left.

Rule of 40 - measures the growth rate and profitability and indicates chances of the business surviving.

To calculate, take the profit margin in percentage and growth rate in percentage and add together.

A result of 40% and above indicates a healthy business.

Margins - measures the profitability of the business after sales and after operating expenses.

To calculate gross margins, take net sales and subtract the cost of goods sold and divide by net sales.

Gross margins above 40% are considered healthy.

To calculate EBITDA margins, take net sales and subtract cost of goods sold and operating expenses and divide by net sales.

EBITDA margins above 10% are considered healthy.

User segmentation - shows the growth rate and churn rate for each segment of users.

Use this metric to better focus your sales efforts in a downturn.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Music courtesy of Bensound.

Direct download: Metrics_for_a_downturn_economy.mp3
Category:general -- posted at: 6:00am CST

This is Investor Perspectives. I’m the host of Investor Connect, Hall T. Martin, where we connect startups and investors for funding.

In our new Investor Perspectives series entitled “Faith-Based Investing in a Post-COVID World”, you’ll hear about primary trends and what makes for a successful faith-based company.

As the COVID pandemic passes, we emerge into a new era. The faith-based investing space is now undergoing tremendous change as we shift to a post-COVID world. Faith-based investing takes precedence with many investors in the financial industry. We have investors and startup founders describe the changes coming up.

Our guests are:

David Simms, Managing Partner and Founder, Talanton [01:18]
Andrew Stoner, Chief Investment Officer, Paradiem LLC [03:28]
Wes Lyons, General Partner, Eagle Venture Fund [05:57]
Michael Arrieta, Founder and CEO, Garden City Companies [09:15]
Josh Wilson, Principal Broker and Owner, Kingdom Syndicate [11:40]
Bill Wichterman, Angel Investor [13:58]

We hope you enjoy the show.
_______________________________
For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/ 

For Feedback please contact info@tencapital.group  

Please follow, share, and leave a review.

Music courtesy of Bensound.

 

Direct download: IP_Faith_Based_-_Show_4.mp3
Category:general -- posted at: 6:00am CST

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