Startup School 2019 - 004 Adora

SUS2019 YC创业课 如何设置KPI和目标

The acronym KPI stands for key performance indicator.

I'm going to define it as a set of quantitative metrics that indicate how healthy your business is doing.

It will also act as a feedback mechanism for whether your current strategy are actually working.

What are the right KPIs to set? I'm going to break this down into two pieces, primary metric and secondary metrics.

What are the characteristics of a good primary metric?

1. Represents delivery of real value?
2. Captures recurring value?
3. Lagging indicator?
4. Usable feedback mechanism?

There are really two primary metrics to pick from. One is either revenue or active users.

Free users will give you different types of feedback than users who are actually paying you.

They are actually fireside chats I did last startup school with Elizabeth and Eric.

One suggestion I have is to select a set of three to five other metrics, secondary metrics, to pair with your primary metric.

The goal of your startup is to grow your primary metric. By doing this, it does two things, it proves that you're making something, lots of people want, and second, it proves you're making something that has a possibility of reaching and serving all those people.

5% to 10% week over week
20% to 50% month over month

Guidelines when defining a goal.

1. Fast initial growth
2. Time to sale
3. Organic vs paid
4. Exponential vs linear

heavy MVP
If you can do pre-sales, that's the best way to do it.

I would be setting up experiments that help output data that shows that what I'm building is actually feasible, and actually people want it.