What to measure, and what to ignore

Different stages need different numbers. Measuring everything is the same as measuring nothing.

What is it?

What matters changes with stage.

Early (pre-PMF): users, activation, retention, and the number of customer conversations you had. Growth (post-PMF): MRR, CAC, LTV, churn, NRR, gross margin, burn, runway.

Everything else is context, not a dial you steer by.

Why does a founder care?

Because a dashboard with forty numbers on it changes no behaviour. Nobody looks at it after the second week, and the ones that do get looked at are usually the ones that go up reliably regardless of whether the business is working.

The test for any metric: if this number doubled, would I do anything differently? If not, stop reporting it.

Example

A pre-PMF company measuring badly: cumulative signups, page views, social followers, app downloads, press mentions. All rising. All meaningless — every one can be increased without a single person getting value.

The same company measuring well:

  • Weekly active users: 34
  • Activation rate (published a rota): 8%
  • Week-8 retention: 11%
  • Customer conversations this week: 4
  • These numbers are worse-looking and far more useful. The 8% activation says exactly what to work on, and the 4 conversations says the founder is not talking to enough people.

    One of these dashboards makes you feel good. The other tells you what to do on Monday.

    The common mistake

    First-time founders often track cumulative totals — total signups, total users ever — which only go up and therefore contain no information. Use active, current and rate-based numbers instead.

    The second mistake: adding metrics without removing any. A metric added is a metric someone must maintain and read. Five that drive decisions beat forty that decorate a screen.

    The third: measuring before there is anything to measure. With twelve users, talk to all twelve.

    How it works

    Step 1: Apply the doubling test

    If this number doubled, would I act differently? If no, remove it.

    Step 2: Prefer rates and current states over totals

    Weekly active, not cumulative signups. Retention rate, not total registered.

    Step 3: Pick five, at most

    Five numbers you check weekly and can recite from memory. More than that and none of them get real attention.

    Step 4: Match them to your stage

    Pre-PMF: activation, retention, conversations. Post-PMF: the growth and money numbers.

    Step 5: Write down what each would make you do

    'If activation falls below 20%, we stop building features and fix onboarding.' A metric with no attached decision is decoration.

    When to use this

    From your first users, reviewed whenever your stage changes.

    When not to use it

    Do not build analytics infrastructure with under about thirty users. A spreadsheet updated weekly is genuinely enough and far faster.

    Do this now

    Apply this to your own startup in My Full Journey (free account).