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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 != That bit is easy.

Metrics 150
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6 Key Rules To Stay Competitive In The Digital World

Startup Professionals Musings

As a business advisor, I have to recommend even to established companies that they review and revamp their competitive strategy now, even if it appears to be working today. Simple metrics and your personal knowledge of the industry can’t keep up with all the relevant competitive forces. You need to be part of a larger ecosystem.

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8 Tactics To Make You A Fearless Business Innovator

Startup Professionals Musings

As a potential investor, I always think of the high rate of failure of disruptive technologies, due to the longer learning curve of customers, infrastructure change consistently required, and higher marketing costs. Define realistic metrics to keep track of progress. You need metrics to incentivize the right team behaviors.

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Document Your MVP for a Developer

SoCal CTO

It's the same as when I've created financial models and then have it reviewed by a hard-core CFO, sophisticated investor or similar kind of expert. And in the case of defining mobile/web/software, there is even more variability in terms of form and format. I'm never trying to embarrass someone. I know how it feels.

Develop 354
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6 Ways To Improve Your Odds Of New Business Success

Startup Professionals Musings

Thus I was pleased to see my own insights covered in a new book, “ Why Startups Fail ,” by Tom Eisenmann, a Harvard Business School professor, who has mentored many more entrepreneurs, and authored more than a hundred HBS case studies from real-world startups. Gather your resources before scaling the business.

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7 Key Factors Obscure Your Customer Acquisition Costs

Startup Professionals Musings

Thus I was pleased to see this subject, and related strategy decisions, covered well in a recent book, “ Brand Vision ,” by Jim Everhart. Leaders and investors need to know if you have and are tapping into your key sources of relevant data, including web analytics, sales management data, and customer relationship management (CRM) software.

Customer 100
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Interview with Eric M. Jackson, CapLinked

socalTECH

Eric is also author of the book The PayPal Wars: Battles With Ebay, the Media, the Mafia, And the Rest of Planet Earth , where he documented that experience. For investors, it gives them a dash board of key metrics, and ensures those investors stay in the loop. I wrote the book because I thought the story needed to be told.