Do you know what metrics to care about when growing your software company? In this video, I share the top 5 metrics you should pay close attention to and how to calculate them to see the truth.
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Are you a SaaS entrepreneur?
If not, probably best to skip this video...
... but don’t worry, next week I’m going to share a killer strategy on how ANY business owner can grow their company by “drafting” on other people’s hard work.
Simple strategy, but powerful results.
However, if you ARE a SaaS entrepreneur, then let’s talk numbers.
Every day I get someone asking:
“What are the key metrics I should be monitoring in my startup?”
Even though it’s a loaded question, when it really comes down to it...
... there’s really only 5.
I call them the 5 C’s of SaaS metrics.
One of the most critical ones you should be tracking is CMRR (Committed Monthly Recurring Revenue)
Hint: Many founders forget to take out a few items that don’t count, and in turn artificially inflate their numbers.
Which leads to bad data, informing WORSE (and potentially crippling) decisions.
Knowing the 5 C’s to track is half the battle.
Knowing HOW to track them is what gives you game-changing performance, quarter after quarter.
That’s what I go over in this week’s video.
One of the most challenging aspects of discussing metrics is ensuring that everyone is measuring them in the same way.
For example, when I was meeting with VC’s raising money for my startup Flowtown, we encountered several investors that calculated Churn or Customer Lifetime Value differently.
As a founder, that lack of standardization can get confusing (and costly)...
... that’s why I love what Andreesen Horowitz has done in 16 Startup Metrics. http://a16z.com/2015/08/21/16-metrics/
They’ve documented exactly how to define ALL major metrics, and how founders need to present them.
But here’s a question for you.
What’s your favourite metric?
Leave a comment with your answer.
For my buddy Nathan - one of his favourites is Expansion Revenue... it’s a great one. What’s yours?
“What gets measured gets managed.” Peter Drucker
Look at these numbers daily.
Use them to guide your product roadmap.
That’s what makes a great founder.
Keep up the good fight!
Don't forget to share this entrepreneurial advice with your friends, so they can learn too: https://youtu.be/oymiiVWahlU
ABOUT DAN MARTELL
“You can only keep what you give away.” That’s the mantra that’s shaped Dan Martell from a struggling 20-something business owner in the Canadian Maritimes (which is waaay out east) to a successful startup founder who’s raised more than $3 million in venture funding and exited not one... not two... but three tech businesses: Clarity.fm, Spheric and Flowtown.
You can only keep what you give away. That philosophy has led Dan to invest in 33+ early stage startups such as Udemy, Intercom, Unbounce and Foodspotting. It’s also helped him shape the future of Hootsuite as an advisor to the social media tour de force.
An activator, a tech geek, an adrenaline junkie and, yes, a romantic (ask his wife Renee), Dan has recently turned his attention to teaching startups a fundamental, little-discussed lesson that directly impacts their growth: how to scale. You’ll find not only incredible insights in every moment of every talk Dan gives - but also highly actionable takeaways that will propel your business forward. Because Dan gives freely of all that he knows. After all, you can only keep what you give away.
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