Startup Funding Espresso -- Operational Metrics
Operational Metrics Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. An efficient operation is one key to a startup's success. Here are operational metrics you can use to check your startup: Basic efficiency - measures the overall efficiency of the business.\xa0\xa0 To calculate, take operating expenses divided by the revenues.\xa0\xa0 The smaller the number, the more efficient the business. Marketing efficiency - measures the efficiency in acquiring new customers. To calculate, take the monthly marketing spend and divide by the number of new customers signed up. The smaller the number, the more efficient the marketing. Sales efficiency - measures the number of leads that turn into customers. To calculate, divide the total sales by number of leads and multiply by 100.\xa0 This is sometimes called the magic number.\xa0 Inventory turnover ratio - measures the efficiency of inventory. To calculate, divide the cost of goods sold by the average inventory.\xa0 Ten is a good result as it shows a turnover of inventory almost every month. Accounts payable to sales - measures how much of suppliers\u2019 money you use to fund sales.\xa0 To calculate, divide accounts payable by annual net sales.\xa0 Use these tools to calculate your operational efficiency. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact Please , share, and leave a review. Music courtesy of .