Thursday, October 17, 2013

Here's what really matters in measuring the success of any business, especially a start up.

A nice piece of writing (here) from by Jim Dougherty in HBR on what really matters when evaluating a business, especially a start up. Hint; it's all about the cash. That is to understand whether a business will succeed or fail often the key can be found by looking at just important items; a) compensation package for employees and b) the pricing plan for customers. 

  1. Are they in sync? 
  2. Are they crystal clear and easy to understand?
  3. Do they work together or against each other? 
  4. Do they incentivize new growth or in helping management make their goal?

To often firms sacrifice success for a dogmatic business model or approach that is devoid of reality. Remember the two most important tasks of every business are in this order:

1. Keep the customers you have
2. Find new customers

Bravo to Jim Dougherty for cutting through all the baloney.

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