Hey Lykkers! So, you and your partner are building something great. The ideas are flowing, the hustle is real, but when it comes to the money talk, does it feel a bit… vague? You might glance at the bank balance and call it a day.

But running a business on gut feeling and a single number is like driving with a blindfold on. What you need is a clear dashboard—a handful of vital signs that tell you the true health and direction of your venture. Let's break down the five non-negotiable metrics you should review together every single month.

1. Cash Runway: Your "Time Left" Clock

This is the most critical number for any business. Cash Runway answers the terrifying question: "If all income stopped today, how many months could we keep the lights on?" Calculate it by taking your current cash balance and dividing it by your average monthly operating expenses.

Running out of cash is the definition of failure for a startup. Monitoring runway is the founder's most important financial job. This metric forces crucial conversations about spending and fundraising before it's an emergency.

2. Burn Rate: The Speed of Your Spend

This is the companion to Runway. Your Gross Burn Rate is simply how much cash you spend each month. Your Net Burn Rate is cash spent minus cash earned (your monthly net loss). Tracking this shows if you're accelerating toward a cliff or gently slowing down. A sudden spike in burn should trigger an immediate partner huddle to ask "why?" Is it a strategic investment or a cost leak?

3. Profit Margin: Are You Actually Making Money?

Revenue is vanity; profit is sanity. You must look beyond top-line sales. Your Gross Profit Margin (Revenue minus Cost of Goods Sold, divided by Revenue) tells you how efficient your core product or service is. Your Net Profit Margin (what's left after ALL expenses) tells you if the entire business model works. Reviewing margins monthly helps you catch issues like supplier cost hikes or inefficient processes before they erode your business.

Philip Campbell, a certified public accountant and author of Never Run Out of Cash, writes, “Poor cash-flow management is causing more business failures today than ever before.”

4. Customer Acquisition Cost (CAC) vs. Lifetime Value (LTV): The Golden Ratio

This duo tells you if your growth is sustainable. CAC is the total sales and marketing cost to win one customer. LTV is the total revenue you expect from that customer over time. The rule of thumb: LTV should be at least 3x your CAC. If it costs you $300 to acquire a customer whose lifetime value is only $400, you're on a treadmill to nowhere. Tracking this monthly ensures your growth strategy is profitable, not just busy.

5. Revenue Concentration: The "Don't Put All Eggs in One Basket" Metric

What percentage of your revenue comes from your top client? Or your top three? If it's more than 15-20% per client or 30-40% for the top three, you're in dangerous territory. This metric is a stark indicator of risk. The loss of one key client could be catastrophic. Reviewing it monthly keeps the imperative to diversify your client base front and center for both partners.

How to Make This a Routine

Set a recurring, one-hour "Financial Dashboard Meeting" on the calendar. One partner prepares the numbers; both analyze the trends. No blame, just diagnosis. Ask: What improved? What worsened? Why? What is one action we will take this month based on this data?

These five metrics turn emotional guesses into strategic decisions. Build the dashboard, review it monthly, and keep your business aligned on reality—not assumptions.