How do you use data to find a financially sustainable business model during your startup’s launch process? What are the most important business activities you can focus on to create a competitive advantage?
Last month, Jon Worren, an entrepreneur-in-residence at MaRS, gave a MaRS Best Practices talk on lean analytics. He emphasized measuring both the cost of customer acquisition and the customer lifetime value to help you find a repeatable and scalable business model. Understanding the right metrics from the beginning and developing processes to measure data will give you a competitive advantage, helping to guide critical decision-making and allowing you to capture opportunities faster.
To learn more about business model analytics, check out Jon’s full presentation here.
Jon offers the following tips to entrepreneurs.
1. Pick the right metrics
Understand which metrics matter to your business. Avoid vanity metrics that don’t have any direct impact on customer acquisition or customer lifetime value.
2. Commit to measuring data
Without data it’s impossible to compare or to learn from many of the processes you’re involved in.
3. Practice testing as your modus operandi
Testing is fundamental to your business. Focus on improving the skills and processes that are involved in testing assumptions.
4. Make a culture of customer acquisition your competitive advantage
Focus on customer acquisition right from the beginning and make it a competitive advantage for your company.
To watch the Hot Tips video from this presentation, click here.
Next Best Practices event: The Importance of Common Core Alignment for Your EdTech Startup (part of our Best Practices Education Innovation Series)
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