Indicating long-term strategic success
The longer term (strategic) KPIs are those that most reflect the long-term success of $COMPANY, in our own eyes but also in the eyes of investors.
Outside-in, comparables perspective
This means that the longer term indicators should be:
- outside-in: does the metric reflect an output/outcome relevant outside the company? This means we are typically looking for lagging metrics such as running ARR, not internal/process metrics such as # of prospect meetings held
- comparable: we should pick the strategic metrics from a common set of metrics that many other startups use too, so that we can benefit from investors’ and advisers’ experience with benchmarks and optimization.
- well-chosen: we should not automatically compare ourselves to other companies on all possible metrics, just those that are most relevant for our particular business model.
Current long-term metrics
- Growth in Annual Recurring Revenue Growth
- Number of paid accounts
- Payback time for Customer Acquisition Cost
- ARR per full-time equivalent (employee)
- Operating profit per paid account
This page is regularly updated. Please check the Midstage Manual for new content for this page.**
Page last updated Wed, 22 Sep 2021 14:35:46 +0000