Setting the right KPIs and focusing on MRR will help you measure and prioritize the value you're delivering to customers.
Setting the right KPIs and goals will objectively tell you if your business is doing well, bad, or just okay, and help you prioritize and course correct.
Pick one primary metric to focus on that quantifies the value you're delivering to customers.
Revenue is the best metric to measure value, and MRR (Monthly Recurring Revenue) is a good indication of whether a product is delivering enduring value to users.
Use revenue as the primary metric to test product success, and define users appropriately to avoid being tricked by an easy definition.
99% of people should use revenue as their primary metric to test whether people want their product and to avoid the trap of getting feedback from free users.
Building a large audience is a prerequisite for modernization, and active users can be a reasonable proxy for revenue, especially if there are strong network effects.
It is important to define user appropriately and not trick yourself by having an easy definition of users, especially when there are two types of users in a marketplace.
Choose a primary metric and 3-5 secondary metrics to get a 360 degree overview of the health of your business.
Pick a value that represents both users getting value, such as weekly trips for Uber riders and drivers, or revenue/active users for biotech/hard tech businesses.
For businesses with regulatory issues, the primary metric is a binary thing, while for those without, revenue should be the primary metric.
Figure out the technical milestones needed to demonstrate the effectiveness of a drug or technology and ask questions to answer if it works.
Choose 3-5 secondary metrics to pair with your primary metric to get a 360 degree overview of the health of your company.
When setting goals for consumer startups, factor in the time it takes to acquire users and make a sale.
For consumer startups, consider the time it takes to acquire users and make a sale when setting goals, as initial growth is usually fast but slows down over time.
I decide to buy or sign up for an app/website instantly if I want it.
Prioritize ideas to grow your business and set weekly targets to ensure you're working on the right idea to meet your goal.
It may take months to make your first sale, but focus on organic growth and avoid paid users in the early days to ensure your startup's growth.
Pick an exponential growth rate or time-box an absolute goal, track progress with metrics and use it as a motivational tool by printing out a graph and putting it everywhere.
Weekly, prioritize ideas to grow your business and make a good guess on what will have the biggest impact to meet your goal.
Set weekly targets and be honest about where you are to ensure you're working on the right idea.