📉 • 2m
ARR vs MRR vs Cash Flow It’s easy to feel like things are going well when your ARR looks strong. Or when MRR keeps ticking up. But if your bank account is saying otherwise, something's off. Breakdown: 1) ARR shows the big picture. Great for investors, not for day to day decisions 2) MRR tracks monthly growth. Helpful for momentum, but not the full story 3) Cash Flow tells you what you can actually spend. And this is where most founders get blindsided If you’re wondering why you’re stressed even with good revenue numbers, it is probably that your cash flow is just misaligned. High ARR doesn’t help if you collect payments annually and burn through cash monthly. That gap between what’s booked and what’s in the bank can kill momentum. Keep an eye on all three. But when it comes to survival, cash flow is king.
Building altragnan • 3m
This infographic shows key startup metrics. MRR is monthly recurring revenue, while ARR is annual recurring revenue. ARPA shows average revenue per customer. Gross Profit is revenue minus costs. TCV and ACV measure contract values. LTV predicts total
See MoreBuilding WelBe| Entr... • 4m
The A-Z Survival Guide to Entrepreneurship! C – Cash Flow Profitability sounds great, but if you run out of cash, your business dies—no matter how good your idea is. I learned the hard way that revenue doesn’t equal survival. Managing cash flow is
See MoreIn God We Trust, The... • 2m
3 DIY Health Checks Every Founder Should Do Monthly 1. Cash Flow Pulse Check → Ask: Did I collect more than I spent this month? → If unsure, review bank statements & tally collections vs payments. Why it matters: Profitable on paper ≠ cash in bank.
See MoreBuilding in 🥷🏻• Pr... • 1y
Google is finally starting to impress on the product the distribution advantage will kick in shortly- a good reminder when distribution is proprietary, distribution wins example Comcast VS Netflix, when distribution is commoditized best product wins
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