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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy. Gross margin positive !=

Metrics 150
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Are you really ready to examine your email open rates?

Berkonomics

If you have not done so, let Google tell you whether your web site is responsive. Although both metrics vary widely between types of audience, you should work to exceed a six percent open rate and two percent click rate for your emails containing sales or marketing information. And treat the result seriously. How about your emails?

Email 156
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Balance Your Marketing Spending Between Free and Fee

Startup Professionals Musings

The case for zero paid media as the new marketing model was highlighted a few years ago in the classic book, “ Z.E.R.O. ” In the book, Jaffe introduces three new sets of metrics for gauging progress: Medium-term metrics. But startups need to remember that even zero paid media doesn’t mean that marketing is free.

Marketing 127
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10 Questions To Lead You To Timely Successful Change

Startup Professionals Musings

A while back, I spotted a book for change management leaders in large organization, and I realized that many of the issues they face are the same as ones faced in every growing startup. Phil Buckley, in his book “ Change With Confidence ,” provides practical answers to fifty of the biggest questions that keep change leaders up at night.

Startup 155
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6 Information Surges Raise Huge Startup Opportunities

Startup Professionals Musings

It’s enough to drown any business which tries to fight it or ignore it, and it’s an opportunity to ride higher and faster than even the successes of Google and Facebook, for those startups that use it as their driving force. Data enable: use metrics and measurements. Accelerate: speed is life in this new world.

Startup 126
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8 Growth Practices That Every Startup Needs To Follow

Startup Professionals Musings

I found some good lessons in this regard in a classic book, “ Becoming Facebook ,” by Mike Hoefflinger, the former Head of Global Business Marketing at Facebook. Pick a single metric that is the focus for all growth. Focus on a few key principles is the key to success, and it takes discipline and determination to make this happen.

Startup 144
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5 Pitfalls to Avoid When Transforming Your Business

Startup Professionals Musings

For example, only a few people today still think of Amazon as an online provider of books and related goods, now that they have exploded their business world-wide into every product arena, added web services (AWS), television and film production (Metro-Goldwyn-Mayer), a bricks-and-mortar grocery chain (Whole Foods), and more.