The Lean Startup movement is helping entrepreneurs turn startups into successful, thriving businesses.
One of the latest books in the Lean series you should read is Lean Analytics: Use Data to Build a Better Startup Faster.
Here are some selected quotes from Chapter 2 about using performance metrics in a startup.
"In a startup, the purpose of analytics is to find your way to the right product and market before the money runs out.
… Here are some rules of thumb for what makes a good metric – a number that will drive the changes you're looking for.
- A good metric is comparative. Being able to compare a metric to other time periods, groups of users, or competitors helps you understand which way things are moving.
- A good metric is understandable. If people can't remember it and discuss it, it's much harder to turn a change in the data into a change in the culture.
- A good metric is a ratio or a rate. Accountants and financial analysts have several ratios they look at to understand, at a glance, the fundamental health of a company. You need some, too.
- A good metric changes the way you behave. This is by far the most important criterion for a metric; what will you do differently based on changes in the metric?"
Key performance indicators/metrics, together with your gut as an entrepreneur, are a powerful way to focus in on what truly matters in your business.
Take a minute to write down three key performance measures in your business.
Then consider ways to drive those measures higher and higher over the next twelve months.
Go ahead. Your success is "counting" on it!
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