finances
SaaS Financial Modeling & Metrics
A SaaS business is a math machine. If you don't know your numbers, you're guessing. This skill makes unit economics legible — MRR, CAC, LTV, churn, burn rate — clear enough to make decisions, rigorous enough to be trusted.
Core Principles
- A SaaS business is a math machine. If you don't know your numbers, you're guessing.
- Unit economics tell the truth about your business long before your bank account does.
- The only financial model that matters for a solo founder is one that fits on a single spreadsheet and gets updated monthly.
- Revenue is vanity. Margin is sanity. Cash flow is reality.
- Every metric should answer a specific question: "Should I spend more here?" or "Is this working?"
The Quit Number
Before building anything, calculate what it takes to replace your income:
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