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Measuring Startup Success [Startups] 
Posted on September 27, 2013 @ 08:28:00 AM by Paul Meagher

Tom Bloomfield has a useful blog post on measuring startup success. Citing Paul Graham he argues that, "merely measuring something has an uncanny tendency to improve it".

Tom makes some useful suggestions such as:

  • Start by measuring one thing. You need some key metric to track whether you are improving or not.
  • Choose a proxy for long term value. Because startups may not be profitable from the get go, it is important that you still figure out what measure needs to be constantly improving to help guarantee the long term survival and growth of your startup.
  • Break down you key metric into Key Performance Indicators that track sub-activities that need to be performed if you are to meet your improvement goals. These should be objective measures of performance that are shared within the company among all employees.
  • Use your KPI planning to implement a business strategy.
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