While working with a new startup, it is easy to get lost in the weeds. The first major milestone is cash flow break-even. This is when income meets expenses. It's math, when (number of customers x contribution margin) = expenses.
- Right Product: Did you build something that people will actually buy?
- Right Pricing: Is value in the customers eyes greater than their total costs?
- Right People: Are there enough customers to buy your product and will they know about it?
- Right Margins: Can your business model support your expenses and be profitable?
Metrics are key. You have assumptions, how do you test and monitor them? And remember that whenever you think you have the right answers, be prepared to change because everything changes.