As we work with new participants in The VentureCity’s growth program, one of the first things we do is to make sure that we share the same language when we agree on the goals for the program and define the set of metrics to measure.
Most founders we work with come from an engineering or design background. We find that there is often a big divide between what people with a business background (marketing, sales, and finance) measure versus what people with a product/engineering background see as priorities. Successful startups bridge this divide by establishing a set of KPI’s that are shared and understood across different teams.
We are launching a series of posts on the set of KPI’s that can be used for setting top-level goals across different teams in the company. This first post is dedicated to the Quick Ratio, a shortcut metric to define where the product stands in terms of growth that has been introduced by Social Capital in a series of blog posts that we recommend to read if you haven’t already.
Let’s start with a quick reminder about how to calculate Quick Ratio. This chart describes how to break down user counts for a hypothetical product from one month to the next: