article thumbnail

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. LTV is imprecise. The first input is CAC.

Metrics 150
article thumbnail

You’re the general. So, make your strategic plan!

Berkonomics

The technique, “OST” (objective, strategies, and tactics), is a very good way to organize your effort to find guideposts and then develop metrics to measure progress. Create a hosted “software as a service” or “on demand” addition to our product line by end of (next) year. What is a strategy? Aren’t these just goals?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

8 Ways Startups Spend Resources Without Adding Value

Startup Professionals Musings

Every entrepreneur I know is short on resources, including time, money, and skills. Waste in a startup is any activity that spends resources, but creates no value or competitive advantage in the eyes of customers. Productive processes start with a plan, and end with metrics that measure value delivered.

Resource 105
article thumbnail

What is your biggest error in company planning?

Berkonomics

It is most often missed assumptions about the market, the competition, the speed of adoption, or other critical metrics you’ve researched, or selected, or even just guessed at to create your plan. That’s likely to be completely unreachable for you with almost any amount of resources. Sources for your data.

Company 156
article thumbnail

10 Metrics To Drive Your Annual Business Review

Startup Professionals Musings

What I’m talking about here is a level of discipline and skill necessary to collect and analyze the relevant business data, known as metrics. As the end of the year approaches, it’s a good time for every startup to assess the metrics, technology, and platforms they’re using to manage the business. Cost of customer acquisition.

Metrics 100
article thumbnail

8 Ways New Ventures Burn Resources Without Thinking

Startup Professionals Musings

Every entrepreneur I know is short on resources, including time, money, and skills. Waste in a startup is any activity that spends resources, but creates no value or competitive advantage in the eyes of customers. Productive processes start with a plan, and end with metrics that measure value delivered.

article thumbnail

9 Keys To Employing Social Media To Grow Your Startup

Startup Professionals Musings

There are many ‘experts’ out there telling you how to do it, or even offering their services. But very few are talking about how to measure your results and return on investment (ROI), and the right metrics for optimizing your marketing environment. Social media is the realm of public opinion and customer conversations.