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Hey {{first_name}} 👋, hope you had a great week! In the last issue, we discussed why tracking AP Turnover Ratio matters, and now we are moving with the next topic from Cash Flow & Expenses content.

Let’s talk about ⬇️

The metric investors are watching closely in today’s market.

For years, SaaS companies could get away with “growth at all costs.” But now? Efficiency is king.

And Burn Multiple is one of the simplest, yet most powerful ways to measure how efficiently you turn cash into revenue.

It tells you how many dollars you burn for every $1 of net new ARR.

📊 Formula:
Net Burn / Net New ARR

Example: If your company burns $1M in a quarter and adds $500K in ARR…

➡ Burn Multiple = 2.0 (Not great, not terrible.)

Investors use these benchmarks:

✅ <1.0 → Excellent (You’re an efficiency machine)
✅ 1.0 - 1.5 → Strong (Scaling well)
⚠️ 1.5 - 2.0 → Borderline (May raise eyebrows)
🚨 >2.0 → Dangerous (Investors will hesitate)

If your Burn Multiple is creeping up, it’s time to act.

If you're a DTC operator or growth strategist, mastering financial efficiency is non-negotiable,

That’s why my friend Valentin created the "Optimal Numbers: DTC Operators' Financial Program."

This live cohort program will teach you:
✅ How to optimize cash flow & profitability
✅ How to build a 12+ month cash buffer
✅ How to make data-driven decisions for scalable growth

What’s inside:
📊 4 interactive live sessions
📊 Real-world case studies & financial frameworks
📊 1:1 coaching with Val to apply these insights to your business

💡 Limited spots available—secure yours now: JOIN THE LIVE COHORT

If you prefer to learn at your own pace, pre-recorded sessions are also available.

Don’t let financial uncertainty hold you back. Master your numbers, master your business.

1️⃣ Lower CAC → Streamline sales, optimize marketing spend.
2️⃣ Boost Margins → Cut unnecessary costs, improve pricing strategy.
3️⃣ Increase Retention → Reduce churn, upsell existing customers.
4️⃣ Forecast Smarter → Run scenario planning to optimize spend.

Getting this right isn’t just about impressing VCs—it’s about surviving downturns and scaling profitably.

Take a few minutes to check yours:

1️⃣ Look at your net burn (total cash outflow minus cash inflow).
2️⃣ Divide it by your net new ARR (new recurring revenue added during the same period).

Once you have your number, compare it to the benchmarks above.

If your Burn Multiple is above 1.5, it might be time to optimize your spending, retention, or pricing strategy.

Not sure where to start? Hit reply and let’s talk.

Here is the exclusive content drop which

{{first_name}} You can get free stuff for referring friends & family to my newsletter 👇

50 referrals - Cash Flow Models Bundle 💰

10 referrals - SaaS Financial Model 📊

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