The main indicator of the effectiveness of a startup
Some comments to my latest topic suggested the idea that it is very important for a startup to somehow evaluate his achievements.
Yes, there are heavyweights of the market, on which many are oriented, but as many correctly note, they are still far from the real business, because the business model is rather primitive and not verified (but the founders are actively engaged in the redistribution of property within the company).
In this regard, the question arises: how to really assess any achievements of a novice Internet company. In other words, "how are we going to measure k ***?".
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A small digression. Once again, the university offered a text in business English, which told the story of a British entrepreneur. He, according to experts. recognized as the most successful retailer of hi-fi equipment in the UK. To come to this conclusion, the experts suggested a very simple criterion: profit / m2. There are giant electronics supermarkets, but their profit / m2 values ​​did not even compare with the performance of this network of small hi-fi hardware stores. Conclusion: although the profits from the largest electronics stores were larger, but in comparison they lost, because they sold less per m2 of occupied space. This is reminiscent of a story about an ant and an elephant, which were measured by forces and the ant raised his wand, one and a half times its weight, whereas the elephant raised only more logs.
In Jim Collins's book “Good to great”, the idea is expressed that for a company, awareness of its “key indicator” is almost top priority, which will allow management to evaluate whether there are significant changes in the positive direction or not?
I share the point of view of Collins and would like to offer some indicators that young Internet companies could use to assess the effectiveness of their future or existing business.
1. For social networks : profit on the number of users. Who cares about how many millions of users in your network, if it does not bring money or only 0.0000000000000000000 (0) 1% of their users use paid services that barely cover overhead costs?
2. For services : sales per number of visits / registrations. The main task of the services, as it is not hard to guess, is the sale of their services, which means that it is important to understand what% of people visiting their website or using their free services pay for additional options or programs.
3. For all : profit on the number of employees. Suppose that we have two companies, one of which earns 1,000,000 per year, and the second 10,000,000. In the first company there are two people working (do you think this does not happen?;) Look at hotornot.com, which only recently started hire the first additional employees), and in the second - 10,000 employees. The conclusion "who is cooler" suggests itself.
Well, a small list for example. Maybe you will have other suggestions on possible indicators?
Yes, there are heavyweights of the market, on which many are oriented, but as many correctly note, they are still far from the real business, because the business model is rather primitive and not verified (but the founders are actively engaged in the redistribution of property within the company).
In this regard, the question arises: how to really assess any achievements of a novice Internet company. In other words, "how are we going to measure k ***?".
')
A small digression. Once again, the university offered a text in business English, which told the story of a British entrepreneur. He, according to experts. recognized as the most successful retailer of hi-fi equipment in the UK. To come to this conclusion, the experts suggested a very simple criterion: profit / m2. There are giant electronics supermarkets, but their profit / m2 values ​​did not even compare with the performance of this network of small hi-fi hardware stores. Conclusion: although the profits from the largest electronics stores were larger, but in comparison they lost, because they sold less per m2 of occupied space. This is reminiscent of a story about an ant and an elephant, which were measured by forces and the ant raised his wand, one and a half times its weight, whereas the elephant raised only more logs.
In Jim Collins's book “Good to great”, the idea is expressed that for a company, awareness of its “key indicator” is almost top priority, which will allow management to evaluate whether there are significant changes in the positive direction or not?
I share the point of view of Collins and would like to offer some indicators that young Internet companies could use to assess the effectiveness of their future or existing business.
1. For social networks : profit on the number of users. Who cares about how many millions of users in your network, if it does not bring money or only 0.0000000000000000000 (0) 1% of their users use paid services that barely cover overhead costs?
2. For services : sales per number of visits / registrations. The main task of the services, as it is not hard to guess, is the sale of their services, which means that it is important to understand what% of people visiting their website or using their free services pay for additional options or programs.
3. For all : profit on the number of employees. Suppose that we have two companies, one of which earns 1,000,000 per year, and the second 10,000,000. In the first company there are two people working (do you think this does not happen?;) Look at hotornot.com, which only recently started hire the first additional employees), and in the second - 10,000 employees. The conclusion "who is cooler" suggests itself.
Well, a small list for example. Maybe you will have other suggestions on possible indicators?
Source: https://habr.com/ru/post/44937/
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