Smart orthopedic startups use metrics to monitor the health of their business.
Below are 11 useful metrics that software startups use.
How many metrics from these 11 is your company using today ?
1/ Runway:
A startup dies without capital.
Your runway is how many months you have left alive.
It becomes harder to raise from VCs if you have under 12 months of runway.
Runway = cash in the bank / monthly burn
2/ Product-Market Fit Score:
Ask your users how disappointed they'd be if they couldn't use your product next time.
If 40% or more say "very" then you're likely reaching PMF.
I prefer this over NPS because it focuses on the user, not hypothetical actions ("would you refer...?").
3/ Recurring Revenue:
Founders and investors both love predictable revenue from existing customers.
It means you only need to make a sale with a customer once.
It's a key metric for fundraising and can be shown as MRR (monthly) or ARR (annually).
ARR = Annual revenue from existing customers.
4/ Burn Multiple:
Startups should spend more than they make early on but efficiency matters (a lot).
Burn multiple shows how much cash a startup burns in order to generate each incremental dollar of ARR.
Burn multiple...
