Startup Best Practices 17 – Strategic Planning Using Your Startup’s Fundamental Equation

Tomasz Tunguz writes:

“..fundamental equation of a business can be a terrific best practice for prioritizing key initiatives across product, marketing, sales and customer success. It’s also a great tool to elevate a team conversation from the everyday tasks to more strategic initiatives.”

More than helping to question assumptions, prioritize projects and align teams, the idea of a single equation diagnose the best place to focus.

Tomasz also elaborated on an example of Ad Network Revenue:

Ad Neywork Revenue

A 5% increase in each of the top line metrics would bolster revenue by 5%. But a 5% increase in impressions meant more publisher acquisitions. In contrast, a 5% increase in cost per click implied more advertiser acquisition. Depending on the comparative unit economics of at the time, Scott could recommend the right path.

source: Startup Best Practices 17 – Strategic Planning Using Your Startup’s Fundamental Equation

Editorial Staff

Editorial Staff at SG Fintech is a team of Fintech enthusiasts.

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