Focus on Key Metrics for B2B Companies

Revenue is the key metric for most B2B companies, and founders should not deceive themselves by focusing on other metrics. It is essential to be transparent about revenue performance, even if it is not good, to stay honest with investors and address the company's challenges. Alongside revenue, burn rate (monthly costs minus revenues) and runway (how long the company can sustain its operations with the current funds) are crucial metrics to include in investor updates. These three numbers offer a clear picture of the company's financial health and are indicators of potential success or failure. In the early stages of consumer companies, focusing on user growth may be more important than revenue as they aim to achieve critical mass or network effect.