After the growth phase comes the scale phase in which you ramp up the business.
Here are the key metrics to consider at the scale stage:
1. Break-even per customer – this shows how many days until the new customer turns profitable.
This is a key factor if you are using funding to grow, as it will show if your business can scale.
2. Gross margins – this metric compared to the industry average shows how efficient the business is and what business drivers can be used to scale the business.
3. Viral coefficient – this metric shows the organic growth and determines how much additional funding will need to be spent on growth.
4. Referrals – this metric is similar to viral coefficient but instead measures how many new customers come from existing customers.
5. User satisfaction – this metric determines how long customers will remain loyal to the company which demonstrates effectiveness against the competition.
Each metric showcases a key factor for scaling the business.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.