This article is a good reminder of how to set metrics at startups. The choice of metric will vary depending on the business but this piece of advice is universal:
My number one tip is to start simple, by developing high level success metrics that, based on your best assumptions, are the key drivers of your business. Document these and make them a part of your team and investor meetings, and focus maniacally on optimizing them one at a time.
There’s actually three pieces of advice in here:
- Think carefully about what your metrics should be
- Once identified use them in all aspects of your business (bonus tip: if you are using different metrics in your team and investor meetings something is wrong)
- Focus your improvement efforts on one metric at a time