What is the most important metric for a new business to measure?
As you may already know, for any large company profit is the most important metric to measure. But for new companies, what is the most important metric to measure?
I personally think that engagement is the most important metric for a new company to measure because if your potential customers are engaged then there are multiple ways you can monetize them. For example John Chow’s readers have been highly engaged from day 1, so every time he tells his readers to buy or do something, they do. This is the main reason he is able to make $40,000 a month from his blog.
To take it one step further, if you happened to start a new business the most important thing you could do with each of your customers is to make sure they are engaged. For example, if I started a dance studio and had a few “engaged” customers, I could find out how to improve the business, ask them to help spread the word about my new dance studio, and get them to buy other dance products from me.
Now, you may disagree with me, which is fine. And I’ll be the first to say that I could be totally off. So I ask you: what do you think is the most important metric for a new business to measure?
Update 1: The guys at Startonomics graciously offered to give two commentors a free pass to their conference on October 2nd in San Francisco. (winners will be announced on this blog post on Friday)
Update 2: The winners will also receive $250 each, which should cover most of the expenses to travel to the conference if you aren’t located in San Francisco. If you are located in San Francisco and happen to be one of the two winners, you will still get the $250.
Update 3: Startonomics selected Raymond and Deep as the winners. They will be contacted by email so that they can be given their free passes as well as $250.