Operational metrics help you understand the health and efficiency of your startup’s internal operations. These metrics ensure you’re building a sustainable business that can scale effectively.

​
Financial health metrics

​
Burn rate

Monthly burn rate is how much cash your startup spends each month.

Gross burn rate = Total monthly expenses

Net burn rate = Monthly expenses - Monthly revenue

Example calculation:

  • Monthly expenses: $100K
  • Monthly revenue: $30K
  • Net burn rate: $70K/month

​
Runway

Runway is how long your startup can operate before running out of cash.

Runway = Cash in bank ÷ Monthly net burn rate

Example calculation:

  • Cash in bank: $500K
  • Monthly net burn rate: $50K
  • Runway: 10 months

​
Burn efficiency

Burn multiple = Net cash burned ÷ Net new ARR

Example calculation:

  • Net cash burned this quarter: $300K
  • Net new ARR added: $100K
  • Burn multiple: 3x

Benchmarks:

  • Under 1.5x: Exceptional efficiency
  • 1.5x - 2.5x: Good efficiency
  • 2.5x - 4x: Acceptable
  • Over 4x: Concerning

​
Capital efficiency

Months to profitability: Based on current growth and burn trends

Revenue per dollar raised: How much ARR you generate per dollar of funding

Growth capital efficiency: Revenue growth per dollar of incremental spend

​
Team productivity metrics

​
Revenue per employee

Revenue per employee = Annual revenue ÷ Number of employees

Benchmarks for B2B SaaS:

  • Early stage: 100K−100K - 200K per employee
  • Growth stage: 200K−200K - 400K per employee
  • Mature stage: 300K−300K - 500K per employee

​
Hiring efficiency

Time to hire: Average days from job posting to accepted offer

Cost per hire: Total recruiting costs ÷ Number of hires

New hire productivity: Time for new employees to reach full productivity

Employee retention: Percentage of employees who stay after one year

​
Department-specific productivity

Engineering productivity:

  • Features shipped per sprint
  • Code deployment frequency
  • Bug resolution time
  • Technical debt metrics

Sales productivity:

  • Revenue per sales rep
  • Quota attainment rates
  • Sales cycle optimization
  • Win rate improvements

Customer success productivity:

  • Customers per success manager
  • Churn prevention success rate
  • Expansion revenue generated
  • Support ticket resolution time

​
System performance metrics

​
Product reliability

System uptime: Percentage of time your product is available

Response time: How quickly your application responds to user requests

Error rates: Percentage of requests that result in errors

Scalability metrics: How performance changes with user load

​
Infrastructure efficiency

Cost per user: Infrastructure costs divided by active users

Resource utilization: How efficiently you use computing resources

Scaling elasticity: How quickly you can handle traffic spikes

​
Development velocity

Deployment frequency: How often you release new features

Lead time: Time from code commit to production deployment

Mean time to recovery: How quickly you resolve production issues

Change failure rate: Percentage of deployments that cause problems

​
Customer support metrics

​
Support volume and resolution

Tickets per customer: Average support requests per customer

First response time: How quickly you respond to new tickets

Resolution time: Average time to fully resolve issues

First contact resolution: Percentage resolved in first interaction

​
Support quality

Customer satisfaction (CSAT): Rating of support interactions

Net Promoter Score (NPS): Customer likelihood to recommend

Support channel effectiveness: Performance across email, chat, phone

Self-service adoption: Percentage using help docs vs contacting support

​
Support team efficiency

Tickets per agent: Volume each support person handles

Resolution rate: Percentage of tickets fully resolved

Escalation rate: Percentage requiring manager or specialist involvement

Agent satisfaction: Internal satisfaction with tools and processes

​
Cash flow and working capital

​
Cash flow timing

Collections period: Average days to collect payment from customers

Payment terms: Standard payment terms offered to customers

Cash conversion cycle: Time from customer acquisition to cash collection

​
Working capital management

Days sales outstanding (DSO): Average collection period

Deferred revenue: Prepaid subscriptions and their cash flow impact

Seasonal patterns: How cash flow varies throughout the year

​
Financial forecasting

13-week cash flow forecast: Detailed short-term cash planning

Monthly financial projections: Revenue, expenses, and cash needs

Scenario planning: Best case, worst case, and most likely scenarios

​
Vendor and partnership metrics

​
Vendor management

Vendor performance: Service level agreement compliance

Cost optimization: Regular review of vendor costs and alternatives

Contract terms: Favorable terms and renewal schedules

​
Partnership effectiveness

Partner-sourced revenue: Revenue from partner referrals

Partner satisfaction: Health of key strategic relationships

Integration performance: Technical partnership success metrics

​
Risk and compliance metrics

​
Security and compliance

Security incident frequency: Number and severity of security issues

Compliance audit results: SOC 2, GDPR, HIPAA compliance status

Data breach prevention: Measures and monitoring effectiveness

​
Business continuity

Disaster recovery testing: Regular testing of backup and recovery systems

Business continuity planning: Preparedness for operational disruptions

Insurance coverage: Adequate protection for key risks

​
Operational efficiency ratios

​
Cost structure analysis

Cost per customer served: Total operational costs ÷ Customer count

Variable vs fixed costs: Understanding cost structure flexibility

Economies of scale: How unit costs change with growth

​
Process efficiency

Automation rate: Percentage of processes that are automated

Manual work reduction: Decrease in manual tasks over time

Process standardization: Consistency across operations

​
Quality metrics

Error rates: Mistakes in key operational processes

Rework percentage: How often work needs to be redone

Quality assurance effectiveness: Catching issues before customer impact

​
Tracking operational metrics

​
Dashboard setup

Create operational dashboards for:

  • Executive team: High-level financial and team metrics
  • Department heads: Specific productivity and efficiency metrics
  • Operations team: Detailed process and system metrics

​
Monitoring and alerts

Set up alerts for:

  • Cash flow concerns: Low runway or high burn alerts
  • System performance: Uptime and response time issues
  • Team productivity: Significant changes in key metrics
  • Compliance issues: Security or regulatory concerns

​
Regular reviews

Weekly operations reviews:

  • System performance and issues
  • Support metrics and escalations
  • Team productivity indicators

Monthly business reviews:

  • Financial health and burn rate
  • Team hiring and retention
  • Vendor and partnership performance

Quarterly strategic reviews:

  • Operational efficiency trends
  • Infrastructure scaling needs
  • Process improvement opportunities

Use business intelligence tools that can aggregate operational data from multiple systems to provide comprehensive views of startup health and efficiency.

​
Common operational mistakes

Ignoring leading indicators: Focusing only on results instead of predictive metrics

Manual processes: Not automating repetitive operational tasks

Poor cash flow planning: Not forecasting cash needs accurately

Inadequate monitoring: Missing early warning signs of operational issues

Lack of standardization: Inconsistent processes that don’t scale

​
Taking action on operational metrics

High burn rate: Optimize expenses, improve efficiency, or accelerate revenue growth

Poor team productivity: Invest in tools, training, or process improvements

System performance issues: Scale infrastructure or optimize application performance

Low cash runway: Reduce burn, raise funding, or accelerate revenue growth

Inefficient processes: Automate manual work and standardize procedures

Operational metrics provide the foundation for sustainable growth. Strong operations enable you to scale efficiently while maintaining quality and customer satisfaction.

Next steps

With operational health tracked, you need to effectively share these insights with your team and stakeholders. Learn about communicating metrics to drive alignment and action across your organization.