If you think that there are no actual numbers to proceed while building your startup project except the amounts of raised investments and your product’s evaluation, than you are far from being a really strategic and thus successful businessman. Unfortunately, it often seems that members of today’s startup communities discuss only those unicorn startups and secretly dream of acquiring the same status for their projects. However, not all unicorns remain unicorns for a long time. Therefore, it is extremely important for any new business to keep that growth level achieved and constantly work on its improvement to survive tough а competition. Here are four simple parameters to be aware of while working on your business plan in order to make so-called “healthy” revenues.
The first metrics to concentrate on while promoting your product deals with the market demand and is known as retention. This implies measuring the number of regular customers who are ready to buy your service more than once. People usually purchase a new product for the first time just to try it and then have to be attracted again by the exceptional qualities or unique features.
Another index connected with demand is so-called the cross-pollination or the possibility of buying products from various categories. If this number is relatively low, you can choose the strategy known as a vertical-specific offering. In other words, it is more likely that your target customer is interested in purchasing particularly the product you develop and not the whole range of connected commodities. Therefore, your potential competitors will include only the providers of this narrow field and not the whole tech industry for example.
While working out the supply strategy, it is worth remembering about the core group of regular customers who usually bring you most of the profits. As a rule, 80 percent of the revenue is concentrated around 20 percent of the whole target audience, whereas the other part comes from diversified sources. In this connection, the satisfaction of the needs of these 20 percent and reacting to their requests and suggestions should be your first priority.
The turnover achieved every season is one of the most important supply indicators. Thus, in case you see that another product supply has no success and the revenues leave much to be desired, it is high time to think of the product enhancement. Remember that stable turnover value reflects your product’s longevity.
Finally, it turns out that developing the initial startup product is not the whole deal. You have to work on its advancement all the time and, what’s more, build a wise market strategy based on simple observations and calculations.
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