Too often, founders pitch investment opportunities without knowing their numbers. It’s a dealbreaker. Investors can’t trust what they can’t measure, and if you don’t know your metrics inside out, why should they believe in your business?
As a founder and CEO, you’re not just responsible for big-picture vision—you’re also accountable for the intricate details of your business. This means understanding your financials on a granular level. You must know your numbers backward, forward, and sideways. That doesn’t mean deflecting to your CFO or team when questions arise. Investors expect you to articulate how your business operates, scales, and delivers value.
Here’s what you need to master:
- Unit Economics: How do your per-customer costs and revenue change with growth? Can you articulate customer acquisition cost (CAC), lifetime value(LTV), and churn rate in different markets?
- Growth Metrics: What are the leading indicators of success, and how have they trended over time? Investors want to see a track record, not just a hockey-stick forecast.
- Scenario Planning: What happens if sales double in six months? How does your margin sensitivity look in a downturn? Are you equipped to manage unexpected fluctuations in demand or cost?
Numbers aren’t just numbers—they tell the story of your business. They reveal strengths, weaknesses, and opportunities. If you can’t confidently discuss your financials, how can you lead your team, identify risks, or seize opportunities? Being hands-on with your business metrics builds credibility and trust.
Remember: knowing your numbers isn’t just about impressing investors. It’s about demonstrating leadership, vision, and accountability. At IMX, we’re looking for founders who command their numbers with precision. Anything less isa hard no.
