KPIs and Startups

Key performance indicators, or KPIs, have been around for decades as business jargon representing the metrics that matter most. Too often, I see startups measuring a ton of different things (which is good) and then making everything important (which isn’t good). The idea is to measure a bunch of stuff, but for the purposes of getting all team members on the same page, there should be a minimal number of KPIs that are shared and talked about regularly with the management team and company — the metrics that matter the most.

Here are some example KPIs that a startup should consider tracking on a weekly/bi-weekly/monthly basis:

  • Cash on hand/runway in months
  • Current annual recurring revenue (ARR)
  • New ARR
  • New customer churn ARR
  • Current weighted sales pipeline
  • New marketing qualified leads
  • New sales qualified leads
  • New clients implemented
  • New bugs
  • Current recruiting pipeline

KPIs are an important part of a startup and should be made as simple and effective as possible.

What else? What are some other key performance indicators you like to track?

2 thoughts on “KPIs and Startups

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