As a startup founder or team member, you’re likely inundated with data and metrics. But are you tracking the ones that truly matter?
While you may be focused on revenue and user growth, there’s a set of less obvious metrics that can provide profound insights into your business’s health and potential.
These often-overlooked indicators can be the difference between guiding your startup to success and falling short of your goals.
North Star Metric
Startups, listen up! Your North Star Metric is a game-changer. It’s the one number that shows if you’re winning or losing. Think of it as your business compass. It varies for each company but always ties to customer value.
Why does it matter? It helps you make smart choices and keeps your team on track. Pick a metric you can measure and act on. It should directly boost your bottom line.
Don’t fall for flashy stats that look good but mean nothing. Focus on what really grows your business.
Your North Star Metric is your secret weapon. Use it wisely and watch your startup soar!
Cash Burn Rate
- Cash burn rate shows how fast your startup uses up money. It helps you plan ahead and make smart money choices.
To keep track:
- Write down all your monthly costs
- Look at fixed and changing expenses
- Watch how your income grows
- Spend based on how much cash you’ll have later
- Knowing your burn rate helps you:
- Stay in control of your money
- Use your resources wisely
- Keep your startup running longer
- Stay independent
Why it matters: Your burn rate is like a fuel gauge for your business. It tells you how long you can keep going before you run out of gas (money). By watching it closely, you can avoid surprises and make sure your startup stays healthy.
Working Capital
Working capital is your startup’s financial fuel. It’s the money you have right now to pay bills and grow your business. Think of it as the cash in your wallet for everyday expenses.
To figure it out, subtract what you owe soon from what you own now. A positive number means you’re in good shape. You can cover your costs and maybe even invest in new ideas.
Keep an eye on this number. It tells you if you’re spending too much or if you have extra cash to use. Don’t let it get too low, or you might miss chances to make your business better. But don’t let it sit idle either – put that money to work!
Customer Lifetime Value (LTV)
Customer Lifetime Value (LTV) rocks! It’s your secret weapon for growth. LTV shows how much money a customer will bring in over time. Why should you care? It helps you:
- Pick the right people to target
- Spot your best customers
- Keep customers happy and coming back
- Set prices that make sense
Knowing LTV lets you spend smart on getting new customers. It’s like having a crystal ball for your business. You’ll see which customers are worth extra love and care. This helps you focus on keeping the right people around.
LTV also guides your pricing. You can offer deals that keep customers coming back without losing money. It’s all about balance – making customers happy while growing your business.
Product Engagement Metrics
Product engagement metrics are your secret weapon for understanding how people use and enjoy your product. They help you make smart choices to improve it.
Track daily and monthly active users to see how often people come back. Look at how long they use your product and which features they love most.
Keep an eye on how many users stick around and how many leave. This shows you what’s working and what needs fixing.
These numbers are like a report card for your product. They tell you exactly where to focus to make users happier. With this info, you can create a product people can’t live without!