Metrics to Manage a healthy business

 #GuestPost from #GrowthSchool

Image courtesy:  ntaskmanager.com

One of the biggest reasons why startups fail is that they don't track the right metrics from the beginning

Here are 25 metrics that  a successful entrepreneur tracks on a daily/ weekly basis at Growth School

𝗢𝘃𝗲𝗿𝗮𝗹𝗹 𝗛𝗲𝗮𝗹𝘁𝗵 𝗠𝗲𝘁𝗿𝗶𝗰𝘀 :

1. CSAT : Customer Satisfaction score usually rated from 1-5

We track different CSAT for products, content, mentor, and programs.

2. ARR : Annualised Revenue Rate ( usually for non-SaaS brands which are not recurring )

3. Gross Margin ( GM ): Revenue - Fixed cost for the product

4. Contribution Margin ( CM ): Gross Margin - Cost of marketing and sales Different brands track this differently and can split it into CM1, CM2 , CM2 so on

5. EBIDTA : Money made after all deductions ( excluding taxes and depreciating assets )

A great metric for measuring profitability.

6. Burn Rate: Total spend per month ( can be measured based on % of revenue vs total burn as well )

7. Runway: How long will the VC money last considering the current burn rate

𝗨𝘀𝗲𝗿 𝗟𝗲𝘃𝗲𝗹 𝗠𝗲𝘁𝗿𝗶𝗰𝘀 :

8. LTV : Lifetime value of the customer

Total predicted spending a customer will make over his lifetime of using the product. This is hard to measure for early-stage startups.

9. LTV : CAC : Ratio between LTV to CAC

Probably the most important metric for investors and the health of the business. A good ratio is 4 and above.

𝗦𝗶𝗻𝗰𝗲 𝗟𝗧𝗩 𝗶𝘀 𝗵𝗮𝗿𝗱 𝘁𝗼 𝗺𝗲𝗮𝘀𝘂𝗿𝗲 𝗳𝗼𝗿 𝘂𝘀, 𝘄𝗲 𝗺𝗲𝗮𝘀𝘂𝗿𝗲

10. AOV : Average order value ( Single purchase )

11. AOV : CAC : Ratio between AOV to CAC

A much more aggressive metric to measure vs LTV : CAC but tells a lot about health of the business

We have also started to measure

12. ARPU : Average revenue per user ( Avg no orders per user * Avg order value )

13. ARPU : CAC : I am sure you can guess what this is by now.

14. AOPU : Average number of orders per user

15. ROAS : Return on ad spend - Total revenue from ads / total ad spend.

𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝗠𝗲𝘁𝗿𝗶𝗰𝘀 :

16. CAC : Cost of Acquisition - cost to acquire one user

17. Paid CAC : Cost of Acquisition from paid channels eg fb ads, google ads etc

18. Blended CAC : Average Cost of Acquisition from all channels ( Eg: Paid + Organic + Referral )

19. Click to LPV : % of users click on ads and land on the Landing page

Yes, not everyone who clicks lands on the landing page. We try to hit 80%

20. CPLPV : Cost per landing page view

21. Cost of ATC : Cost for adding to cart

22. LPV to ATC : % of users who click on add to cart from people to land on the landing page

23. ATC to Purchase: % of people to eventually buy after adding to cart

24. CPA : Cost per action

25. CVR : % Conversion Rate

While these might not be everything that we measure, as there are many different metrics individual teams measure,

Looking at these metrics as a founder gives a good idea of how the business is doing on a DoD, WoW and MoM basis.

What important metrics do you measure daily in your job or running your business?

 

The Story of a small boy!

 The story of a small boy....

Youngest of our children at Child Children's home, our beloved 4.5 year old Sai(name changed) broke his leg last week and was hospitalized.

When I visited him at the home today, he welcomed me with such a big smile and narrated how he got hurt while playing with a senior boy...not a minute of complaint or show of pain...he was excited when I sat next to him to hear his hospital adventure, and he said he got lot of fans there....he wanted to get well soon and watch Jailer movie again. He said shyfully that no school next 6 weeks as he can't walk and saw his mischievous smile when he said that.

He said, 'aunty, photo edutukulam as I look funny!'... when I felt a bit uneasy, he showed me the smile gesture with his hand and another hand holding me tight. Such a sense of positivity when he is stuck in a place and obvious pain and discomfort and still kept smiling...he asked me to get a hospital bed, for he liked the small one in hospital..and said the bed will be, all for himself!... naughty fella.

We complain for small n petty uneasiness things in life. Here is a child, who got parted from his parents early in life, has only an old grandmother as a guardian and who can barely visit him, who made his happiness his choice, makes fun of his ortho heavy bandage, and says he looks funny with a daiper, but enjoys attention of all other boys and attenders. He was super excited to pet my fur baby n her fuzz for a while ....

Lessons and blessings do not come from elsewhere, but with these tiny souls around....and loves to call caretaker Senthil as Anna ...as he wants to make him feel young itseems, then why Aunty me da?!

Love you baby. Heal soon n get back on your feet. We have lot of naughty running to do around our home

25 Wonderful Tips and Tricks for a Successful Marriage - How to enjoy your married life in 21st Century!

1. Choose to love each other, even in those moments when you struggle to like each other. Love is a commitment, not a feeling…

2. Always answer the phone when your husband/wife is calling. When possible, try to keep your phone off when you're together with your spouse…

3. Make time together a priority. Budget for a consistent date night. Time is the "currency of relationships," so consistently invest time into your marriage…

4. Surround yourself with friends who will strengthen your marriage. Remove yourself from people who may tempt you to compromise your character…

5. Make laughter the soundtrack of your marriage. Share moments of joy. And even in the hard times, find reasons to laugh...

6. In every argument, remember that there won't be a "winner" and a "loser." You're partners in everything so you'll either win together or lose together. Work together to find a solution…

7. Realize that a strong marriage rarely has two strong people at the same time. It's usually a husband and wife taking turns being strong for each other in the moments when the other feels weak…

8. Prioritize what happens in the bedroom. It takes more than sex to build a strong marriage, but it's nearly impossible to build a strong marriage without it…

9. Remember that marriage isn't 50/50— divorce is 50/50. Marriage has to be 100/100. It's not splitting everything in half, but both partners giving everything they've got..

10. Give your best to each other, not your leftovers after you've given your best to everyone else…

11. Learn from other people, but don't feel the need to compare your life or your marriage to anyone else's. God's plan for your life is masterfully unique…..

12. Don't put your marriage on hold while you're raising your kids or else you'll end up with an empty nest and an empty marriage…

13. Never keep secrets from each other. Secrecy is the enemy of intimacy...

14. Never lie to each other. Lies break trust and trust is the foundation of a strong marriage…

15. When you've made a mistake, admit it and humbly seek forgiveness. You should be quick to say, "I was wrong. I'm sorry. Please forgive me."

16. When your husband/wife breaks your trust, give them your forgiveness instantly. This will promote healing and create the opportunity for trust to be rebuilt. You should be quick to say, "I love you. I forgive you. Let's move forward."

17. Be patient with each other. Your spouse is always more important than your schedule..

18. Model the kind of marriage that will make your sons want to grow up to be good husbands, and your daughters want to grow up to be good wives…

19. Be your spouse's biggest encourager, not his/her biggest critic. Be the one who wipes away their tears, not the one who causes them…

20. Never talk badly about your spouse to other people or vent about them online. Protect your spouse at all times and in all places…

21. Always wear your wedding ring. It will remind you that you're always connected to your spouse and will remind the rest of the world that you're off-limits…

22. When you have to choose between saying nothing or saying something mean to your spouse, say nothing every time…

23. Never consider divorce as an option. Remember that a "perfect marriage" is just two imperfect people who refuse to give up on each other…

24. Life is all about counting your blessings. Not regretting of what you have not got. But to count every moment of happiness, smallest of success and tiniest of the saving you could make. Cherish it

25. Remember : Family First! indulge in simple living and high thinking. Together You Can!

Metverse Muse -80-83 Edition Published by Unsung Hero Poetess Dr Tulsi Hanumathu from Vizaq

 

Book Review : Songstress of Srivilliputtur: Aandal's Journey of Love and Devotion - Author Dhivya Balaji

When I first met Dhivya Balaji, fondly called as DB in the Chennai Bloggers Club group, I was super impressed with her style of speech, choice of words and quality of clarity when it comes to handling books as an Editor.   Siddharth and I initially wanted DB to do the editing of our book "Simply being Sidd",  however Notion Press offered it as a package and we went ahead with them, later on to regret not engaging DB in the work

As she pinged me couple of years later, I was amused by her growth as a Author and Book Editor.  Her style of editing improved, her writing skills were top-notch and choice of words much more classy and had its own pitch in the readers mind.   

She uses Simple words, sometimes in Tanglish - a mix of Tamil and English in her book "Songstress of Srivilliputtur" and it makes the book much more enjoyable.  Honestly, every time I visit a 'Sriman Narayana' temple, I used to stand and watch the "Andal" sanithi in awe, admiration and devotion.   This book only strengthen my bond with Andal in wholesome

Madurai Artist - Oviyar Maruthi (I dont want to call him Late despite the fact he passed away this year),  because there is no real death to an artist.   They live on the work they leave behind.   The cover page of this book stands as a strong testimony to the amazing art of the Oviyar Maruthi from Madurai.  Dhivya indeed made him eternal through her book.

Every chapter takes you one step closer to Kodai and her devotion to Lord Srirangan, Sriman Narayana, Sri Ranganathar, which ever form you want to call him.  Trust me, this is the best and probably the only book in English that speaks to you, takes you to the world of Andal.   Kodhai.. found under the Tulsi tree, garlanding herself before sending the garlands to her Lord, there are such instances, that touch your heart and soul.

Andal from just being a form of Goddess, Alwar, to us, we find her an angel in devotion to her Lord, a poetess who weaves words to enrich the greatness of her God, and the love that has no parallel.   Dhivya manages to keep up the momentum of the story across the chapters of the book.   It is very tough to right about this genre in specifically about a character that lived hundreds of years ago, who keeps mesmerizing us with the beauty and her utmost devotion and love.  This love makes me compare the love of Radha-Krishna,  Ramar and Sabari,  Meera and Krishna and every other eternal form of beauty of the heart we have known

Dhivya Balaji succeeds as a writer for the simple reason that she keeps her reader glued to the context of the story.  I started it actually months ago and took a break for my daughters marriage and spent last few days after my hectic work schedules as I found this book giving me peace, feeling of satisfaction of reading a great facto-fiction filled with prose and poetry and making my day end with its beauty.  The madness of work, used to stress me out and couple of chapters after that used to make me feel stressfree.   If that is what this book can do to me, I am sure it would bless all its readers., in its own way

My mom's Tirupavvai singing found a new meaning after I read this book.  The love of an young girl touched my heart as she yearns for her Lord.   This book made me fall in love all over again with my Sriman Narayana....honestly, I wished I lived like her.   The love she felt and showed to her God and the beauty of the poems she weaved for HIM.   

Dhivya Balaji,  thank you for writing this book.   This book is here to stay.  This book is a script for a movie.   This book reminds me of 'Avvaiyar" movie, and makes me feel, one day, some director will find this and dream this as a worthy project.   

Loved reading the "Songstress of Srivilliputtur".   Thank you DB!