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Why Misunderstanding Startup Metrics Can Cost You Your Business
- kingofsanda 10y agoStartups are risky and there's no guarantee that you are going to be successful and make money with it.
- mindcrime 10y agoReally good stuff from Mark Suster. I remember a time when this would have been at the top of the HN front-page, instead of the latest general news story from the NYT or whatever. Too bad that the Eternal September finally got to HN, despite pg's efforts. Still, the "old" HN had a good run. As for the article itself... the one metric that he didn't mention explicitly, but sort of indirectly alluded to, is CoGS - Cost of Goods Sold[1]. CoGS is directly related to your per-time profit margin and can explain how you can have the scenario he described where revenue exceeds customer acquisition cost but you still lose money. [1]: https://en.wikipedia.org/wiki/Cost_of_goods_sold https://en.wikipedia.org/wiki/Cost_of_goods_sold Edit: to be fair, the front-page is actually full of fairly interesting stuff ATM. But man, is there WAY more "general news" most days, than there used to be.