The first year and a half of a company’s existence is less about minding the metrics and more about putting in place the infrastructure to be able to measure your business in the long run. Hopefully, you’ll get to a point where the metrics of gauging your progress are relatively easy—everything from expanding your user base to revenue growth. However, to accomplish that, you must put together the right pieces upfront.
It’s critical to figure out in those first 18 months which components will produce the long-term metrics that make the most sense for you. About the only certainty is that it will not be a finite set.
So, what are some of the essential pieces in building a company? Here are some examples that helped me at Blackboard and SocialRadar:
1. Assemble a strong team
People are your power. You will get a sense of the potential value of your endeavor by the kind of people who want to work for it. Having a reliable team will allow you to overcome obstacles more assuredly, which will keep the progress moving along at an unwavering clip.
2. Retain a strong team
It’s one thing to lure energetic, innovative people. It’s another to keep them. How well you can do that will depend on the rest of the metrics on this list.
3. Find the right space
I’m not going to pretend to practice Feng Shui—or to have a flair for interior design—but I do know that I want my employees to feel comfortable and even inspired by their environment and surroundings. You want a space that not only fits your staff without crowding (including areas reserved for private conversations) but also provides a productive atmosphere—uncluttered, well-stocked, and aesthetically pleasing to support collaboration and innovative thinking.
4. Formulate your strategy
You could argue that you can’t make good progress without good strategy. There are exceptions, of course, but don’t count on being one of them. You may be confident you will find success, but increase your chances by building a thoughtful plan for how to get there.
5. Define your culture
Culture will include your company’s goals aside from making a profit, such as employee satisfaction and community involvement. Your contributions in this category can be measured with respect to the company and on their own merits.
6. Connect with savvy investors
People who financially support young companies are more than cash infusions. If they have notable experience as an investor, that can validate you and your mission in ways that can’t be quantified on a spreadsheet.
7. Get feedback from clients, customers, vendors and peers
Positive reaction is one of the clearest signs of progress. Praise from unaffiliated third parties is often more effective than your own marketing spin. Obviously, word of mouth is a best friend to any company.
Aim to evaluate these metrics multiple times by the time your company hits the 18-month mark. Once you feel you have these elements in place, you can determine what other metrics you will establish for the next phase (however long that is or takes). Measuring the aforementioned metrics in the first 18 months does not guarantee long-term success, but it will establish a stronger chance of it.