How you close Q1 will define your year's revenue

If you are here, you are a founder, and if you are a founder, you may be thinking about closing Q1.

We all know the importance of setting quarterly goals. We read the books, listen to the podcasts, and nod along at conferences.

But here’s the question that really matters:

Are you actually tracking the right things?

Most founders I work with don’t have a real scorecard—a clear, structured way to measure progress every week. Instead, they rely on vague gut feelings, scattered reports, and a never-ending to-do list that only gets longer.

I get it. You’re busy. You have a million things on your plate. But if you’re not tracking the right data, how do you know if you’re winning or losing?

Let’s fix that before the quarter ends.

1. The 10–20 KPI Rule

A real scorecard isn’t just about sales numbers and bank balance. Yes, those matter, but they don’t give you the full picture.

Your scorecard should have 10 to 20 key performance indicators (KPIs)—the essential levers that determine whether your business is thriving or struggling. Not just revenue or cash in the bank, but the deeper metrics that reveal the full picture.

Financial KPIs (The Big-Picture Indicators)

1. Revenue (Absolute & YOY Growth %) – The clearest sign of business expansion and market demand. But raw revenue alone doesn’t tell the whole story.
2. Net Profit (% & Absolute) – The real bottom line: how much revenue actually turns into profit after expenses.
3. EBITDA (% & Absolute) – Wall Street’s favorite metric: earnings before interest, taxes, depreciation, and amortization—a clean view of operational profitability.

Operational KPIs (How Efficiently You Run the Business)

4. Operating Cash Flow – Measures the actual cash generated from daily business operations.
5. Cash Conversion Cycle – How long it takes to turn investments (inventory, resources) into cash from sales. A slow cycle can kill momentum.
6. Accounts Receivable Turnover – How quickly you collect cash from customers. Faster = healthier cash flow.

Customer KPIs (How Well You Keep and Delight Customers)

7. Customer Retention Rate – The percentage of customers who stick around. Growth isn’t just about acquiring customers—it’s about keeping them.
8. Net Promoter Score (NPS) – A direct measure of customer loyalty. If people wouldn’t recommend your business, you have a problem.
9. Return Rate (%) – How often customers return or refund your product. High return rates signal deeper quality or fit issues.

Marketing KPIs (How Effectively You Drive Growth)

10. Conversion Rate (CR) – The percentage of visitors who take a key action (purchase, sign-up, etc.).
11. Click-Through Rate (CTR) – The percentage of users who engage with an ad or link. If they aren’t clicking, they aren’t buying.
12. Customer Acquisition Cost (CAC) - How much is costing you to add 1 extra customer?
13. LifeTime Value (LTV) - How much revenue is one extra client bringing you in it’s whole customer journey (lifetime)?
14. Average Order Value (AOV) - How much are clients spending per transaction?

Efficiency KPIs

15. Return on Assets (ROA) - Indicates how profitable a company is relative to its total assets.
16. Return on Equity (ROE) - Measures how effectively management is using a company’s assets to create profits.

Innovation KPIs

17. R&D Expenditure as a Percentage of Sales - Indicates the level of investment in research and development.
18. New Product Revenue - The revenue generated from newly launched products.

The Scorecard Test

Imagine it’s Friday night. You’re on a plane with no internet, and you can only receive your weekly scorecard. Can you tell if your business is on track without checking Slack, emails, or calling your team?

If not, your scorecard isn’t doing its job.

2. The “Stop Consuming, Start Implementing” Challenge

It’s easy to get stuck in mental maceration—that cycle of consuming more and more information but never actually implementing what you learn.

Let’s break that cycle.

If you don’t have a weekly scorecard with the right KPIs, stop consuming content (after reading this newsletter).

Don’t open another podcast, book, or article until you build one. Because this one change will be 10x more valuable than anything else you learn this month.

3. The End-of-Quarter Sprint

With just a few weeks left in Q1, now is the time to:

• Audit your goals—Are they clear, measurable, and actually moving the company forward?
• Review your progress—Are you hitting the right numbers, or just staying busy?
• Refine your scorecard—Do you have the 10–20 key metrics that truly matter?

Closing the quarter strong isn’t about adding more to your plate—it’s about focusing on what actually drives growth.

If you’re ready to implement a system that keeps you on track without drowning in work, let’s talk.

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Best,

Ignacio

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