Startup Metrics: Analyze a Business like an Investor
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Startup Metrics: Analyze a Business like an Investor

Learn how to make strategic decisions based on metrics to grow your startup into profitability and high valuations
3.7 (9 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
2,604 students enrolled
Created by Kamiar Kordari
Last updated 12/2015
English
Current price: $10 Original price: $20 Discount: 50% off
1 day left at this price!
30-Day Money-Back Guarantee
Includes:
  • 1.5 hours on-demand video
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Make sense of numbers in your business
  • Increase your financial intelligence
  • Speak the language of business with investors, bankers, and partners
  • Collect the right data for your startup
  • Measure performance metrics
  • Improve your margins
  • Calculate customer lifetime value
  • Segment customers to find the best buyers
  • Increase efficiency of customer acquisition funnel
  • Scale up your proven business model
View Curriculum
Requirements
  • Basic business knowledge: revenue, profit, customers, etc.
  • Familiarity wit basic finance
  • Basic math
Description

Measuring the right data in your business is essential for long-term planning. Startup success depends on making strategic decisions to improve these core numbers or metrics.

This course is required for anyone planning to start a business or those who have already have a business but don't have a business training and are not familiar with the fundamentals of analyzing the performance of a business.

This course walks you through the three stages of every startup. It goes deep into business numbers and strategies, breaks them down, then takes the core principals out of them.

Entrepreneurs need to know what core numbers to look at, how to track them, and how to improve them. Very often entrepreneurs seeking investment aren't able to answer simple questions about their finances and provide solid numbers in front of a venture capitalist.

This course will create a solid foundation for entrepreneurs to learn about startup metrics and make sense of the numbers in their business.

Who is the target audience?
  • This course is required for anyone starting a business.
  • This course will help entrepreneurs seeking investment.
  • This course will help businesses to get unstuck.
  • This course is useful for anyone turning around a business.
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Curriculum For This Course
36 Lectures
01:18:35
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Why Should You Be Here?
4 Lectures 07:09

Welcome to this course. Let me tell you why the content of this course is important for every entrepreneur, what topics I will cover, and a lit bit background about myself.

Preview 03:34

As an entrepreneur you should decide and be clear about what type of business you are building. This decision affects your strategies in growing and allocating your resources and efforts. There are two main types of businesses.

Preview 01:23

What is a Startup?
What is a Startup?
1 question

When you start raising investment money for your startup, you should study the investors before you approach them. Pick the ones that have a investment criteria that match your startup.

Preview 01:03

What is an angel investor?
1 question

To become interesting to investors, you should show that your first attribute is that you are an effective entrepreneur. This means you understand and can focus on the highest priorities at the stage you are in. You can execute, measure, and improve. This course is giving you a framework to know what to focus on, how to measure it, and how to improve it.

Preview 01:09
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Three Stages of a Startup
1 Lecture 02:35

As a startup grows from early stages to world domination, it goes through distinct stages. The goals, challenges, and strategies in each phase is unique. In this lecture you will learn about these stages.

Preview 02:35
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Stage 1 - Product/Market Fit
3 Lectures 05:12

In product/market fit stage you are exploring, and figuring out what problem you are solving, what your solution is, and who your customers are.

Preview 02:25

You need a metric to measure if there is fit. This lecture gives you a simple way to measure your product/market fit.

Product/Market Fit Score
01:55

Learn the key metrics in showing the efficiency of your business in using cash, its capital needs, and the timeline for the next fundraising.

Burn Rate & Runway
00:52

What is MVP (Minimum Viable Product)?

MVP
1 question
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Stage 2 - Capture Marketplace
8 Lectures 16:28

After you find a product that is in demand you are ready to put resources into accelerating the growth of your business. This stage has its own unique challenges, goals, and performance metrics to be measured.

Goals/Challenges in Capturing Marketplace Phase
00:40

You should think about how you can increase the frequency of purchase for each customer. MRR is a metric that measures the recurring revenue.

Metric: MRR (Monthly Recurring Revenue)
02:35

Startup founders must figure out who their potential customers are and have an efficient way to reach out to them and turn them into customers. Investors are looking for startups that have found an efficient marketing/sales process. Sales funnel is the model used to show how a startup converts a stranger into a loyal customer.
Why Should You Know Your Sales Funnel?
01:10

Let's learn the terms related to sales funnel: lead, prospect, customer, loyal customer

Sales Funnel Terms You Should Know
02:03

If a customer doesn’t come back to make more purchases (or cancel their subscription) they become churned customers.
Churn
01:28

Funnel helps you to figure out how much to spend to acquire one customer, compare different channels that you use to acquire customers, and find your best customer segment.

Why Is Funnel Important?
03:17

Sales Funnel
1 question

VCs look at churn rate as an indicator of whether or not you really have a good product/market fit. If your user growth reaches a plateau after 6 month, because users are leaving, that is a sign that your initial product/market fit was based on a small sample of data. You should think about ways to improve the churn rate.

How to Improve Churn Rate
01:48

When growing a business, the financial structure of the business model impacts how much capital is required to grow the business. One common problem companies face is the cash flow problem.

Cash Flow Problem
03:27
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Stage 3 - Optimization
12 Lectures 29:53

To fuel customer acquisition you may have been experimenting with affiliate programs, paid advertisement, PR, content marketing, partnerships, referral programs. Soon your growth starts to slow down and you’ll need to focus on what is working the best. It is important that you test and measure these experimentations and then put more resources into those that work.

Optimization Phase Introduction
01:37

This is an important metric that shows how much you earn in total from a customer before they leave your business.

Customer Lifetime Value
03:35

When you zoom in your customer base, you may identify segments there. To increase profits you should start finding out which subsegment you want to focus on.
Customer Segmentation
04:38

How much can you spend to acquire customers (e.g. on Google or Facebook)? By keeping an eye on this metric you know how far is too far.

Customer Acquisition Cost
02:29

Entrepreneurs make mistakes in calculating how much they spend on acquiring one customer. This number is very important and impacts your customer acquisition strategy. Therefore, you should avoid these common mistakes and calculate it correctly.

Three Common Mistakes in Calculating CAC
01:15

Magic number is a metric that shows how efficient your marketing strategy is.

Magic Number
01:47

Contribution margin is a metric that shows how much of each dollar in revenue will be kept as profit.

Contribution Margin
02:55

What is considered good/better/best for these metrics?

Guidelines
01:50

VCs have started to evaluate investment opportunities with an imaginary benchmark in mind: can this startup become a $100 million per year opportunity? Let's look into 3 ways you can reach to this benchmark.

$100 Million Benchmark
01:32

These are the companies that generate $10s from each customer. What are the key metrics for the specific challenges they have?

Type 1 - Flies
02:59

These are the companies that generate in $1000s from each customer. What are the key metrics for the specific challenges they have?
Type 2 - Rabbits
03:00

These are the companies that generate $100K from each customer. What are the key metrics for the specific challenges they have?
Type 3 - Elephants
02:16
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Example: Steve's Business
8 Lectures 17:18

Steve starts a business. Let's go over his numbers.

Steve's Business
02:36

Let's rewrite the profit formula to discover the impact points.

Profit Fundamental Formula
03:00

Let's change the fixed cost and see its impact on the profit.

Fixed Cost
01:40

Let's change the purchase frequency and see its impact on the profit.
Purchase Per Year
01:55

Let's see the impact of changing the number of customers on the profit.
Number of Customers
01:59

Let's see the impact of changing the unit cost on the profit.

Unit Cost
01:28

Let's see the impact of changing the unit price on the profit.

Unit Price
01:55

Let's see the collective impact of changing the five impact points on the profit.

Collective Impact - Putting All Together
02:45
About the Instructor
Kamiar Kordari
3.7 Average rating
9 Reviews
2,604 Students
1 Course
Tech Executive, Business Strategist, MBA Instructor

I am the founder and CEO of a tech startup in Silicon Valley. In my executive and management roles I have created and sold software and hardware products, have raised investment money, and have established strategic partnerships. In my role as an instructor for the MBA program at the University of Maryland I have taught business growth strategies for startups and have been a mentor for startups. I started my career as an engineer (with a PhD degree in Engineering) and product manager, but soon found my passion in building and growing companies.