Numbers tell the story of the business — if you can read them
As a product grows, the business behind it becomes more complex. There’s revenue. Costs. Cash flow. Margins. Customer counts. Retention curves. Acquisition costs. Lifetime value. Conversion through funnels.
Founders often feel mild dread about these. The numbers feel intimidating. The terminology is unfamiliar. Spreadsheets multiply faster than they can be understood.
Most of it isn’t actually that complicated. A small handful of numbers carry most of the meaning. Once you understand those, you can have grown-up conversations about the business without needing an accountant in every meeting.
Revenue isn’t just one number
When founders say “revenue,” they often mean several different things. Worth being precise.
Gross revenue — t...
