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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy. The first input is CAC. Customer acquisition cost.

Metrics 150
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8 Strategies To Capitalize On Untapped Global Markets

Startup Professionals Musings

With a singular focus on building unicorns, very rapid growth has been a key metric. With today’s pervasive Internet, the best ideas traverse continents and improve with successive waves of adaptation, through diversity in experience, culture, and worldview.

Global 345
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Praying to the God of Valuation

Both Sides of the Table

The browser and thus the WWW and the first Internet businesses were born circa 1994–95 and there was a golden period where anything seemed possible. And then in the late 90’s money crept in, swept in to town by public markets, instant wealth and an absurd sky-rocketing of valuations based on no reasonable metrics. It was 1991.

Valuation 466
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8 Keys To Real Innovation Outside of Silicon Valley

Startup Professionals Musings

With a singular focus on building unicorns, very rapid growth has been a key metric. With today’s pervasive Internet, the best ideas traverse continents and improve with successive waves of adaptation, through diversity in experience, culture, and worldview.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

Internet scale. So while the simplest way that people often evaluate stocks is by P/E ratios (price-to-earnings), one also needs to look at other metrics such as the PEG (price-to-earnings-growth). [of In many Internet startups 80% of the operating costs will be people. Investors value growth. So which company is better run?

Startup 418
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ESADE Business School Commencement Speech

Steve Blank

Just look at the disruptive challenges that businesses face today– globalization, China as a manufacturer, China as a consumer, the Internet, and a steady stream of new startups. Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO.

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5 Stages Of The Market Lifecycle Gate Startup Success

Startup Professionals Musings

Influencers are talking about this opportunity as one of the “next big things,” like the Internet of Things (Iot) or artificial intelligence (AI). Established company process rules and metrics now characterize the leaders in this market stage. I don’t recommend an expectation of funding on that one just yet.