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It’s a very important concept for me because in a startup you are constantly under pressure and have way too many distractions. Having a set of metrics that you watch & that you feel are the key drivers of your success helps keep clarity. And the more public you can make your goals for these key metrics the better.
When talking to startup founders or other innovators, we always ask questions to better understand their business as a core. One way to approach that last question is to use this simple model: Customer Acquisition Cost (CAC) How will your business reach prospects? Next, define what you need from a metrics and reporting standpoint.
A post by Fred Wilson pointed me to Dave McClure's StartupMetrics presentation. This is a great presentation and one that I'm going to point out to startup / early stage company CEOs. Define what you need from a metrics and reporting standpoint. If these numbers work out, then often scaling is more a question of capital.
If you’re a Web-based startup, for example, show me how many unique visitors you think you can get in the beginning, and what you’re using for an estimated conversion rate (buyers to browsers). And it’s surprising how few startup founders think in those terms. Part of those questions are around StartupMetrics.
I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” Exec Summary: Most companies (98+%) in the world (even tech startups) should be very profit focused. One of them is profitability.
It’s a conversation that creeps up from time-to-time. For a combination of reasons I didn’t end up talking with the CEO in time and the company quickly became over subscribed. They might want you to start lean. This post was prompted by an email exchange I had with a young entrepreneur. That’s OK, too.
Under the heading, “The Book On Bezos,” the callout lists ten actionable and impactful nuggets of startup advice. We don’t give up on things easily. We didn’t give up.”. “ If you’re not stubborn, you’ll give up on experiments too soon. We are stubborn on vision. We are flexible on details…. The Two Pizza Rule.
Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. Innovate In the early years of a startup there is a lot of kinetic energy of enthusiastic innovators looking to launch a product that changes how an industry works.
I promised to do this post as a follow-up to the session to provide additional links and information. Once you build it, they will now ask you about the key metrics that they need proven in order to see if you really are a good investment. The real reason to build an MVP is to do early tests of key StartupMetrics for the business.
TechCrunch Europe ran an article in November of last year that European startups need to work as hard as those in Silicon Valley and I echoed the sentiment in my post about the need for entrepreneurs to be maniacal about their businesses if one wants to work in the hyper competitive tech world. I started feeling panic attacks.
For this morning's company profile, we thought we'd connect with ShareSquare (www.getsharesquare.com), a newly funded Los Angeles startup focused on QR barcodes -- 3D barcodes -- focused on musicians and entertainers. We caught up with Matthias Galica , the firm's founder, to hear more about the company.
Yesterday, I was talking to a startup founder about their MVP and they said something that finally got me to write this post: "I have a few investors interested but they want to see a product." If you do build the MVP and show it to them, they will ask you about your metrics. They really want metrics, not a product.
Its interesting to think about how universities might want to have their staff better aligned with moving ideas from the lab to start-ups. He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -.
I recently got together with Aaron Shechet and an early stage startup to discuss the direction the company might want to take. I grew up in Los Angeles and went to undergrad at UC Santa Barbara, graduating in 2003 with Honors in Economics. While at UC Santa Barbara, I started a café which served over 1100 dorm residents.
As a startup, you need to use your limited resources to excel at a few core things for your best customers, in order to stand out and get the momentum going. Pick a single metric that is the focus for all growth. Customers today have adapted to a fast-moving world, and they expect every business to keep up. Less is more.
When you see startups like SpaceX and Pinterest grow from a low valuation to a billion dollars in just a few years, it’s easy to assume that if you just keep doing what you are doing, you can get there as well. Of course, that means a mindset willing to give up much more equity, and taking on a whole new level of risk.
skip to main | skip to sidebar SoCal CTO Monday, March 12, 2007 MyShape Article - Analyst Misses the Point The NY Times did a piece today on MyShape, a start-up in Pasadena - Log in Your Measurements, and the Clothes May Fit. He has been the CTO for several start-ups, most notably eHarmony.
skip to main | skip to sidebar SoCal CTO Sunday, February 25, 2007 Challenge of Predicting Winners I just read a bit on the payout to YouTube from the Google Acquisition ( Internet News , CNN ). He has been the CTO for several start-ups, most notably eHarmony. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
At our mid-year offsite our partnership at Upfront Ventures was discussing what the future of venture capital and the startup ecosystem looked like. When you look at how much median valuations were driven up in the past 5 years alone it’s bananas. Please follow him & welcome him to Upfront!! <== And reset they must.
skip to main | skip to sidebar SoCal CTO Saturday, February 17, 2007 About this Blog Ive been thinking about doing a blog with my thoughts on technology and whats happening in the Los Angeles area technology scene for a while, but it was Ben Kuos recent start of a blog that inspired me to actually go ahead and do it. Thanks Ben.
This company was started by Victoria Duff (who many of us know from back in the late 90s), Phillis Lane (who I have known for quite a few years) and Jon Bukosky. Hopefully this is a sign of a new kind of ecosystem where there will be the possiblity of creating good start-ups that are not a classic VC kind of play.
skip to main | skip to sidebar SoCal CTO Saturday, February 17, 2007 Where LinkedIn Works for Me Ive been a long time user of LinkedIn , but only recently have started getting the benefits I always expected. He has been the CTO for several start-ups, most notably eHarmony. He has twenty years’ experience as a CTO.
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
How did they end up with such an irreverent site and what was their objective? Should you have 7 people doing your seed round and why Ron Conway is the S&P 500 of Venture Capital (this discussion starts at minute 59). Company grew by more than “400% each year” for past few years [assume growth metric = revenues].
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
Ive personally been involved in the start-up world in Los Angeles for about 15 years, and have had the opportunity to work on many early-stage companies (e.g., He has been the CTO for several start-ups, most notably eHarmony. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? .
Some items from the pod cast: 100,000 - babies born as a result of relationships started on eHarmony 15M registered 1% of marriages in US this year resulting from eHarmony I dont know if these are true, but still, the impact of the vision of the original founders Neil Clark Warren and Greg Forgatch is amazing.
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
I have been close to the tech & startup sectors for more than 20 years and I can’t think of a period in which I felt more optimistic about the innovation and value creation I see in front of us. The number of startups being created has increased by an order of magnitude. Thank you, Aaron Sorkin!
He tells us: If you’re starting a new internet company, its important to know who your audience is, and to make sure that you don’t let your own experience and that of other Time Poor people guide you wrong. He has been the CTO for several start-ups, most notably eHarmony.
They decide to wake up early to read the materials. In town board members also only scan it because they, too, have morning meetings before the board meeting starts. The meeting starts. It probably starts late. If you put up 5 slides on “what should we order for lunch today” the board will spend 30 minutes debating that.
Almost every early-stage startup who has approached investors for funding has heard the innocuous sounding rejection “I love your idea, but come back when you have more traction.” A graph that shows a hockey-stick “up and to the right” curve with at least three data points per key indicator is a great visual assist.
In fact, after several years of trying, Ive instead started relying on my CTO Forum group and private events (like an upcoming wine tasting). Why does this hurt, well I was just reading a few blog posts yesterday on finding startup co-founders: Where do you Find Cofounders? He has twenty years’ experience as a CTO.
He has been the CTO for several start-ups, most notably eHarmony. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. ► February (2) CTO Founders / Cofounders Part-Time Startup CTO? . ► February (2) CTO Founders / Cofounders Part-Time Startup CTO?
But we do it anyway, because we believe that the short-term metrics probably aren''t indicative of the long term.”. As I discuss in Entrepreneurs Should Go For The Quick Buck – Then Stop , there are situations in which a startup can generate profitable, near-term revenue that does not support, and may even undermine, its long-term strategy.
That should make you wonder - how do you measure traction in a metric? While thinking about the parameters of traction, and how to measure it, I was impressed with a new book, “ Scaling Lean: Mastering the Key Metrics for Startup Growth ” by Ash Maurya, a serial entrepreneur, and creator of the one-page business modelling tool Lean Canvas.
For our Friday interview, we thought we'd catch up with Los Angeles-based MarketShare , the Elevation Partners-backed software provider, to hear where the firm is nowadays. You mentioned that you've been growing the company recently, and made a recent acquisition? We also just made an acquisition of Jovian over the summer.
It’s important to define your growth strategy, document it, communicate it to your team, and align metrics and employee rewards to target goals. In most companies, maintaining momentum requires the right strategic partners and acquisitions, in lieu of short-term price adjustments and special sales.
The top 10 companies only make up 45 percent of the entire space. In the last few years, we've seen a spurt of activity where technology has started to penetrate the industry, and has started to change it. Scott Cannon: We started in 2012, when it was basically a couple of people on a telephone and the yellow pages.
." Revenue doesn't pay your bills, GM does — @msuster 2/ Founders obsess with revenue as a vanity metric. Payback periods on customer acquisition way more important to you in the near-term. Some even grow "bad" revenue just to show growth. Ultimately it matters a great deal.
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