Return to Video

11-13 Metrics_That_Matter

  • 0:00 - 0:06
    One of the interesting thing about costs is that in the old days costs and revenue,
  • 0:06 - 0:11
    the minute you started your company, your investors said oh, we know how to track all this.
  • 0:11 - 0:15
    We want you to fill out an income statement, a balance sheet, and cash flow,
  • 0:15 - 0:20
    and we want you to do accounting from day 1 which gives us visibility and forecast, etc.
  • 0:20 - 0:25
    The problem is these were execution metrics.
  • 0:25 - 0:28
    Existing companies execute known plans.
  • 0:28 - 0:32
    You could in fact do all the spreadsheets you want for every board meeting,
  • 0:32 - 0:35
    but in fact they're not worth the paper they're printed on.
  • 0:35 - 0:40
    But you and your maybe rent-a-CFO or accountant have spent a lot of time.
  • 0:40 - 0:44
    Now understand that your VCs or investors, if their professionals,
  • 0:44 - 0:46
    need them for their investors.
  • 0:46 - 0:51
    But what you really need to be doing is working with your investors and your management team
  • 0:51 - 0:55
    is to derive the metrics that matter.
  • 0:55 - 0:58
    If your investors really want to see income statements, balance sheet, client referral,
  • 0:58 - 1:02
    great you could give them fantasy documents all they want.
  • 1:02 - 1:05
    But what your really interested in is trying to understand,
  • 1:05 - 1:09
    what are the metrics that matter for your business?
  • 1:09 - 1:11
    I'll give you some examples.
  • 1:11 - 1:13
    In value proposition, what was the product cost?
  • 1:13 - 1:16
    What was the market size? What share could you take?
  • 1:16 - 1:18
    What is the competition? What are they charging?
  • 1:18 - 1:24
    In customer relationships all the get-keep-grow metrics, some of which we talked about,
  • 1:24 - 1:27
    some of which you'll discover, what were the customer acquistion costs?
  • 1:27 - 1:31
    What were the conversion rates? What was the lifetime value?
  • 1:31 - 1:33
    These are key metrics.
  • 1:33 - 1:35
    This is a lot more important than what is revenue in year 4,
  • 1:35 - 1:37
    because you're just guessing about that.
  • 1:37 - 1:40
    But these are numbers you're going to be living with every day.
  • 1:40 - 1:43
    By the way, what market type are you in?
  • 1:43 - 1:47
    If you remember from our earlier lectures, if you're an existing market,
  • 1:47 - 1:52
    that's a different type of revenue curve than being in a new market.
  • 1:52 - 1:54
    Do your investors still agree?
  • 1:54 - 1:59
    What are your operating costs? What are the basic fixed and variable costs of the business?
  • 1:59 - 2:03
    What's the cost of your channel? What's the margin, the channel needs?
  • 2:03 - 2:06
    How much are you going to have to spend on channel promotion,
  • 2:06 - 2:10
    shelf space, any other channel extra charges?
  • 2:10 - 2:13
    Then again for your revenue stream.
  • 2:13 - 2:17
    Do you now know with certainty the average selling price, the number of customers per year,
  • 2:17 - 2:21
    achievable revenue, how long it takes to close a sell?
  • 2:21 - 2:25
    Here's the number that actually intersects with one of the ones that your investors
  • 2:25 - 2:27
    are worrying about all the time.
  • 2:27 - 2:31
    How much money are you spending per month?
  • 2:31 - 2:34
    Often called burn rate.
  • 2:34 - 2:39
    Not only how are you burning per month, but when we just calculate that out,
  • 2:39 - 2:42
    when will you run out of money?
  • 2:42 - 2:50
    All these numbers are ones that you as founders need to have on the top of your head.
  • 2:50 - 2:57
    No startup has 300 numbers. There's probably somewhere between 5-15 that matter.
  • 2:57 - 3:03
    Maybe you could be the exception, but you as the founder need to know all these parameters.
  • 3:03 - 3:09
    In fact the exercises, see if you could go up to a white board and list them.
  • 3:09 - 3:13
    If you can't, understand that that's your job in searching for the business model.
  • 3:13 - 3:19
    When you know these numbers, the spreadsheets fall out of these.
  • 3:19 - 3:25
    But trying to do it ab initio from some guessing spreadsheet just is some fantasy.
  • 3:25 - 3:32
    You need to get these metrics that matter known, searched, understood, and don't worry,
  • 3:32 - 3:36
    they will change, but the whole game of the business model canvas and the customer
  • 3:36 - 3:41
    development process was for you to find them out firsthand and to experience them,
  • 3:41 -
    not to have them happen to you.
Cím:
11-13 Metrics_That_Matter
Leírás:

11-13 Metrics_That_Matter

more » « less
Video Language:
English
Team:
Udacity
Projekt:
EP245 - Lean Launchpad
Duration:
03:44
Udacity Robot edited Angol subtitles for 01x-13 Metrics That Matter
Amara Bot hozzáadott egy fordítást

English subtitles

Incomplete

Felülvizsgálatok Compare revisions