Remove Metrics Remove Retention Remove Revenue Remove Valuation
article thumbnail

Why revenue shouldn’t be your North Star Metric

VC Cafe

The CEO shared the revenue target for the year at X, and the revenue target for next year at 3X. One of the board members asked a simple question: “Why is revenue our North Star KPI? One of the board members asked a simple question: “Why is revenue our North Star KPI?”

Metrics 179
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. I’m guessing much of this was 101 to many readers.

Metrics 150
Insiders

Sign Up for our Newsletter

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

article thumbnail

How to Raise Money – It’s a Journey Not An Event

Steve Blank

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Not all startups need outside investment to grow.

Cofounder 429
article thumbnail

16 Entrepreneurs Discuss Whether or Not Business Success is Overrated

Hearpreneur

While one may see profits as a success, others may view it as customer satisfaction, employee retention, or innovation. For example, are you measuring revenue growth, or profitability? A business can be highly successful revenue-wise this year, by leveraging things that will come back to your organization’s bottom line next year.

article thumbnail

Lessons Learned: The three drivers of growth for your business.

Startup Lessons Learned

Master of 500 Hats: Startup Metrics for Pirates (SeedCamp 2008, London) This presentation should be required reading for anyone creating a startup with an online service component. He also has a discussion of how your choice of business model determines which of these metric areas you want to focus on.

article thumbnail

The wrongness of relativism

A Smart Bear: Startups and Marketing for Geeks

Still… Now Slack has been valued at over a billion dollars, less than a year after launch, every month adding more than a million dollars of annual recurring revenue. What does it actually mean that metric X is better than average and metric Y is below? “It’s not fair,” we all said to ourselves.

Metrics 246
article thumbnail

18 Ways to Make Your Financial Model Stand Out to Investors

David Teten

financial statement summaries, valuation analysis, ratio analysis, etc.) More reasonable: a company with a direct sales model may drive revenue growth based on the number of productive sales reps and a quota, with a target that is higher over time. once a model has been finalized. 12) Design for printing. 16) Cash is king.