Are you a SaaS entrepreneur?
If not, probably best to skip this blog…
… 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.
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.
“What gets measured gets managed.” Peter Drucker (click to tweet)
Look at these numbers daily.
Use them to guide your product roadmap.
That’s what makes a great founder.
Keep up the good fight!