Who This Helps
You're a Junior Analyst who just saw a key number drop. Maybe revenue is up but cash is flat. You need to find the real problem fast and tell your team what to do next. This is for you if you want to stop guessing and start shipping analysis that actually gets used.
This guide is part of the Founder Finance Basics Mission Pack, which helps you understand unit economics, runway, and reporting so you can make calm decisions.
Mini Case
Meet Ben. He runs a small SaaS company. Revenue grew 12% last month, but cash in the bank stayed the same. That's a red flag. Ben needs a one-page unit economics truth. He asks you to find out why cash isn't growing with revenue.
You look at the numbers. Your first guess: maybe customer acquisition cost (CAC) jumped. But you dig deeper. You find that the payback period went from 7 months to 10 months. That means growth spend is less efficient. The root cause? A new ad channel brought in customers who churn faster.
Now you have a clear story. Revenue is up, but cash is flat because new customers cost more to acquire and leave sooner. Your recommendation: pause that channel and fix the onboarding flow.
Do This Now (5 Steps)
- Grab the data. Pull last 3 months of revenue, cash balance, and customer counts. Don't overthink it.
- Calculate unit economics. Find your CAC, average revenue per user (ARPU), and payback period. Use a simple spreadsheet.
- Compare trends. Look at month-over-month changes. If revenue is up but cash is flat, focus on costs or churn.
- Identify the drop. In Ben's case, the payback period jumped from 7 to 10 months. That's your clue.
- Write one recommendation. Don't list everything. Pick the biggest lever. For Ben, it's pausing the new ad channel.
Avoid These Traps
- Blame the data. Don't say "the numbers are wrong." They're telling you something. Listen.
- Fix everything. You can't. Pick one root cause and one fix.
- Skip the story. A list of numbers isn't analysis. Tell your team why it matters.
- Wait for perfect data. You'll never have it. Use what you have and note assumptions.
- Forget the audience. Ben needs a decision, not a PhD thesis. Keep it simple.
Your Win by Friday
By Friday, you'll have a one-page analysis that shows the root cause of a KPI drop and one clear recommendation. Your team will know what to do next. You'll feel like the person who actually understands the business.
And hey, you might even get a high-five from Ben. That's a win.