As a startup founder, you’ve got big ideas, and the resolve to make them a reality. But it’s not all about the concept – behind the scenes you need some solid planning and tracking. And that’s where startup metrics become important.
In this article we’ll do a brief dive into what they are, why they are important, and when to track them. Then we’ve got loads of other resources for you to keep the momentum up and learn more. Let’s go!
1. What are startup metrics?
You’ll always need the traditional profit & loss and balance sheet financials to run your business, but startup metrics highlight any problems and opportunities early enough to do something about them. Here are a few key ones you’ll want to be aware of from the start:
- Startup financials: cash burn, cash runway, recurring revenue
- Customer success: churn, customer acquisition cost (CAC)
- Growth & expansion: customer lifetime value (LTV)
- Saas metrics: leads, lead velocity rate, conversion rate, velocity
2. Why are metrics important?
Metrics help you see any potential issues before they happen, so you can use them to update drivers in your forecast assumptions, and to communicate to investors. In most cases investors will expect you to have a good grasp on your startup’s key metrics, so even if this is all new to you, it’s an essential aspect of planning. Get onto it from the start and make life a lot easier as you start growing!
3. How do you know which metrics to use, and when?
This depends on what stage you’re at! You won’t need to look at the cost and efficiency of securing customers, when you’ve only just landed your very first one, so when you’re just starting out, it’s as simple as the absolute number of customers you have, and any revenue and profit. Once you’ve got some customers onboard, you’ll need to be on top of how much they cost you to obtain (yes…this happens!), and how much they’ll be worth to you in the long term. It’s so important to know which ones to track and when – and we can make sure you are on top of this.
4. What happens next?
You might be at the beginning of your startup metrics journey, or part way through, and the great news is: we can help at any stage. And don’t forget, we are also experts in assisting SaaS startups with the more specific metrics they need to succeed. We will go over all the ways to calculate what you need to know and when, in a simple and easy to follow way.
Join us on the 11th April 2024 for our online event: ‘SaaS Startup metrics & dashboards’ to gain that extra insight you need, and if you’re ready to get stuck in further, BOOK A CALL with us for a chat, and get investors excited about your startups future.
