Weekly Challenge: Know Your Numbers

Know Your Numbers: The 30-Second Investor Test

If an investor asked you your CAC, LTV, and gross margin right now — could you answer in under 30 seconds?

This is Week 1 of our Capital Readiness series, and we're starting with the fundamentals. Because here's the truth: investors don't just want to hear your vision. They want to see that you understand your unit economics cold.

The 5 Metrics Every Founder Must Know

1. Customer Acquisition Cost (CAC) — How much does it cost to acquire one customer? If you don't know this, you're flying blind on marketing spend.
2. Lifetime Value (LTV) — How much revenue does a single customer generate over their entire relationship with your business? Your LTV:CAC ratio should be at least 3:1 for a healthy business.
3. Gross Margin — What percentage of revenue remains after direct costs? SaaS companies typically aim for 70-80%+, but what matters is knowing YOUR number.
4. Monthly Recurring Revenue (MRR) — The lifeblood of any subscription business. Know your MRR, your growth rate, and your churn rate.
5. Burn Rate & Runway — How much cash are you spending per month, and how many months of cash do you have left? If you can't answer this in your sleep, you're not ready to raise.

Why This Matters

Investors aren't testing your memory. They're testing your operational awareness. A founder who can recite their metrics instantly signals discipline, focus, and a data-driven mindset. A founder who fumbles tells the investor one thing: you're not ready for their capital.

This Week's Challenge

Write down your 5 key metrics. If you can't fill them all in, that's your homework for the week. Screenshot your completed list and tag us — we'll feature the best ones.

Remember: raising capital isn't a moment. It's a season. And it starts with knowing your numbers.