Measuring success as a tech entrepreneur is not always easy. You have to focus on the right metrics, or your business can fall short in ways that will cost you money and time. If you’re like most founders, though, you probably want some guidance on how to measure things effectively so that you can make smart decisions and grow your business successfully. The following are some common pitfalls I’ve seen with entrepreneurs who don’t know how to measure their success.
Measure what you need to measure
When you’re a small startup, you need to be careful with what metrics you measure. You don’t want to spend time measuring things that aren’t necessarily relevant. However, it’s important that you do measure something and keep track of progress over time. Here are some examples of the types of data I track:
- Number of users who register on my website and how long they stay on the site
- Number of users who sign up for my newsletter, where they come from, and when they sign up (I have an email marketing platform)
- Amounts spent on advertising campaigns (Facebook ads) and which ones get the most clicks or engagement
Empower yourself and your business by measuring success
The first step to measuring success is knowing what you need to measure. There are many different ways to measure the health of your business, but it’s important that you select the appropriate metrics for your particular situation. In some cases, revenue and profit may be sufficient; in others, this might not be enough (or even relevant).
For example: If you’re launching a startup with non-traditional funding sources (like crowdfunding platforms), you might want to focus on number of backers or total funds raised as opposed to profitability. On the other hand, if your startup has already reached profitability and is looking for additional growth opportunities—like acquiring more customers or finding new channels through which they can reach their existing customer base—then tracking sales numbers will likely be helpful in this case as well.
When you measure things the right way, here’s what it can do for you
Measuring success is not just about budgeting and forecasting. It can also help you increase your confidence, ability to make decisions, speed at which you make decisions, and even help you avoid making the wrong kind of decision altogether.
Let’s look at some examples:
- Increase confidence. Whenever someone says “I don’t know,” they are actually saying that they don’t know something right now but may know it in the future. The only way to be 100% certain about anything is if it was already proven true or false. If there’s a gap between what someone thinks is true (and thus what they believe) vs what has been shown through research or testing (and thus what has been proven) then their level of confidence in their conclusion will suffer as a result of this uncertainty. In short: more data means less guessing around with higher levels of certainty across all areas where this holds true!
Measuring the right things is key to making the right decisions
Measuring the right things is key to making the right decisions.The value of measuring the right things. How to measure it? What should I be measuring? How often should I be measuring it? Why do I need to measure it?
Conclusion
The right metrics can help you measure your business’s success and make better decisions. You don’t have to be a data scientist or an Excel whiz to get started—just follow the tips above and start collecting data on the things that matter most to your business. Your team, your customers, and even yourself will thank you in the end.