You want to be a successful entrepreneur. What are the key metrics you should track?

This is backward, talking about metrics!!! As an entrepreneur, the best thing you can do is figure out the right thing TO do. Not how to do more of it = Revenue and Profit. You can't measure this "doing the right thing", yet. That's for later. If people need polka-dot colored mobile phones, then you need to understand them deeply enough to know what they cannot articulate. As an entrepreneur understanding this and building a solution that provides what people want is what they will pay your for. If everyone wants polka dot colored mobile phones...they will find you. Profit and Revenue will show up at your door. Stop thinking about money...think about what value you provide FIRST and to WHO.

Revenue and profit are obvious and essential, but only relevant to the extent that they are goals for you. A successful entrepreneur will be successful if he or she achieves their goals. So go back to why. Why are you doing this? What would you be able to do if you were "successful"? Use that insight to set your goals.

Los ingresos y beneficios son métricas que al principio no debemos tener muy en cuenta. En las fases iniciales de los proyectos, la métrica más importante es la opinión de tu cliente. Con ese feedback podrás ir construyendo un mejor producto o servicio.

Aspiring entrepreneurs should focus on key metrics to gauge success. Monitor customer acquisition cost (CAC) to ensure efficient spending on acquiring clients. Track customer lifetime value (CLV) for insights into long-term profitability. Keep a close eye on gross and net profit margins for financial health. Measure conversion rates to optimize sales strategies. Assess churn rates to retain customers effectively. Stay attentive to cash flow, a lifeline for startups. Social media engagement and Net Promoter Score (NPS) offer valuable insights into brand perception. Ultimately, a balanced approach to these metrics ensures a comprehensive view of your entrepreneurial journey.

Throughout my entrepreneurial journey of 10 years, I've learned that tracking the right metrics is crucial for entrepreneurial success. Key performance indicators like customer acquisition cost, customer lifetime value, and churn rate provide valuable insights into business growth and sustainability. Additionally, monitoring metrics related to product performance, such as conversion rates and average order value, can guide strategic decision-making and drive profitability. By prioritizing these metrics, aspiring entrepreneurs can make informed decisions and navigate their journey to success with confidence.

Understanding unit economics involves tracking Customer Acquisition Cost (CAC) against Lifetime Value (LTV) on a per-customer basis. By dissecting these metrics across different customer segments, businesses can identify which segments yield the highest LTV:CAC ratios. This insight guides resource allocation towards channels and segments that generate the most profitable returns. Utilizing Customer Relationship Management (CRM) software enables businesses to segment customers based on various metrics such as purchase frequency and churn rate. This segmentation facilitates targeted marketing strategies aimed at enhancing customer value and retention, ultimately driving sustainable growth.

While LTV is obviously an important metric in business evaluation, there are times where it may not tell the whole story. You have to REALLY know your customer if you are accurately estimating how much value to your business. What happens if they switch services (or products)? What if they have unforeseen circumstances? While LTVs can give you an estimate, they can’t give you everything.

Customer acquisition cost (CAC) represents the investment required to acquire a new customer, while customer lifetime value (LTV) denotes the total revenue expected from a customer throughout their engagement with your business. These metrics serve as vital indicators of your marketing and sales efficacy, as well as customer satisfaction and retention levels.

El coste de adquisición es un métrica que nunca podemos olvidar. Pero tampoco podemos olvidar que es más barato retener a un cliente contento que captar uno nuevo. Por lo que la repetición de compra juega un papel muy importante para que tu modelo de negocio sea exitoso.

Finding a gap and filling it is not enough, being able to keep customer satisfaction high is what is going to scale one's business. Using metrics, and data is often underestimated. Customer loyalty depends on many variables that need to be measured before being able to talk the right decisions to boost customer satisfaction.

Continuously gauging these metrics through surveys, reviews, and referrals will provide actionable insights into how well our solution resonates with target customers' needs. The key takeaway is that diligently tracking satisfaction and fit will enable us to make data-driven decisions to refine, improve, and optimize our offering for market success.

You provide a product that your customers are happy with. This is more than enough when achieved. It indicates that you're there and nothing can stop you.

Does your solution solve the problem or is it just a product? What are the customer's immediate reactions to the solution? Do go back to your customers for regular feedback sessions and capture the key points from discussions.

Product-market fit refers to how well your product or service aligns with the needs and desires of your target audience. It's about ensuring that what you offer addresses a real problem or desire within the market and resonates with your customers. Customer satisfaction, on the other hand, measures how content or pleased your customers are with what you provide. It's a reflection of how well your product or service meets their expectations and delivers value to them.

Growth rate reflects the percentage increase in revenue or customer base over a specific period, indicating the momentum and potential of your business. Scalability measures your ability to handle increased demand without proportional increases in costs or resources.

Tracking growth rate and scalability metrics is essential for understanding the trajectory of your business. Growth rate, expressed as a percentage change in key metrics over time, such as revenue, profit, customers, or users, provides insights into the pace at which your business is expanding. On the other hand, scalability refers to your business's ability to accommodate increasing demand without sacrificing quality or performance.

Cette catégorie me semble la plus importante, d’autant plus pour des entreprises engagées comme Kipli. En dehors du CA et de la marge, votre réussite est aussi hors financière. Qu’est ce que vous créez pour vos clients, pour vos fournisseurs, pour vos salariés ? Est-ce que vos produits et vos services manqueraient à vos clients et à la société s’ils venaient à disparaître ? Qu’est ce que je peux faire pour créer le plus de valeurs pour les clients en ayant un impact positif (ou le moins négatif possible) sur la planète ?

Most entrepreneurs get in the game of business because they want to create lasting impact and positive change. I agree that those could be tracked by patents, awards, press, etc., which are all external qualifies and success metrics. But what is even more important, in my opinion, are the internal qualifiers. It all comes down to the Vision you set as an entrepreneur when you started your business and to your WHY. That Why is directly linked to the impact you wanted to create and the values and mission that led you to become an entrepreneur. Thus it is important to go back to that Why? and also measure your internal success metrics of how close you are to what you planned to achieve and to the impact you wanted to create.

Innovation involves the development of novel or enhanced products, services, or processes aimed at delivering value to customers and the market. Impact refers to the results or consequences of this innovation on customers, society, or the environment. Monitoring these metrics enables businesses to assess their level of differentiation from competitors, the extent of value contributed to their industry or niche, and the positive changes generated in the world. Methods for measuring innovation and impact include tracking patents, receiving awards and recognition, monitoring social media engagement, media coverage, and analyzing case studies.

As an entrepreneur, having a vision is key but will you have the execution capacity to actually make the vision come to life? Many people have ideas but very very few execute on them. This is the main difference between a dreamer and an entrepreneur!

Unlock Startup Success: Master the Startup Trifecta - Hire the very best people - Make sure the company doesn’t run out of money - Articulate the vision and lead it. Now, let's dive into the metrics game. • Tracking revenue and growth rate monthly, quarterly, or yearly. • Measuring burn rate to understand cash utilization and break-even points. • Determining cash runway to indicate sustainability. • Assessing Customer Lifetime Value (CLV) & Post-Acquisition Value (PAV). • Monitoring customer retention to evaluate business performance. • Analyzing customer acquisition cost for efficient spending. • Regular monitoring ensures informed decisions and growth opportunities.

For entrepreneurs aiming for success beyond the usual metrics, consider these unique indicators that we track at Arrowhead Consulting: Employee Engagement Scores: High engagement levels correlate with productivity and innovation, indicating a healthy company culture. Net Promoter Score (NPS): Measures customer loyalty and the likelihood of referrals, providing insights into brand health. Learning and Development (L&D) Investment Return: Measures the impact of training on employee performance and retention, highlighting the value of investing in your team's growth. Tracking these metrics can provide a more nuanced view of your business health, guiding strategic decisions and fostering sustainable growth. #Entrepreneurship #BusinessMetrics

In my opinion other key metrics to consider are cash flow & market share. - Monitoring the flow of cash into and out of our business to ensure we have enough liquidity to cover expenses and invest in growth. - Understanding our position in the market relative to competitors to assess our growth and identifying opportunities for expansion.

Recently, I discovered the concept of an infinite game from Simon Sinek, and it blew my mind. Finite-minded entrepreneurs play the game of business with finite metrics. Infinite-minded ones play the game with infinite metrics, driven by a higher purpose than themselves. For example, Patagonia plays the game of business to save the planet, Toms plays to improve lives. Playing with an infinite mindset is hard because businesses are fueled by finite metrics. But, as one of the founders I admire says: 'In your old age, you will be remembered more for how many people you elevated than for how much you grew sales. All companies are judged by annual revenue, But people are valued by how much they helped others to grow.' Freddy, Platzi."