While I haven’t historically paid any attention to week over week growth, the more I think about it the more I like it. Why? Because in a startup it’s so hard to get things going and the numbers are so small in the early years. A few dollars of revenue here, a few qualified leads there. On an absolute basis the numbers are tiny. Continuing with yesterday’s post on Recurring Revenue and Week Over Week Growth, here are a few more thoughts on tracking week over week growth:
- Watching revenue go from $1,000 to $1,500 isn’t too impactful, but seeing 50% growth is more reassuring
- Small, measurable goals (like 5% per week growth) are easy to understand and get buy-in from team members (e.g. we need to add $500 of recurring revenue this week and everyone will understand it)
- A focus on weekly growth sets a metrics-driven tone for the culture
- Consistent growth gets much harder as the numbers get larger, but it should be achievable in the first one to two years
- Once the startup is larger, tracking growth on a monthly basis and then a quarterly basis becomes more normal
Entrepreneurs would do well to track week over week growth for their key metrics and share the information with everyone via an LED scoreboard.
What else? What are some other thoughts on tracking week over week growth?