Introduction:
Startups have been a buzzword that has been doing the rounds for quite a while. In their initial development stage, companies offering a product or service are typically classified as startups. They are bootstrapped, not yet ready to be bought over, and in the process of developing into a sustainable business model.
It is a well-known fact that 90% of startups fail. Why is this so high? What could be the reasons for this? How best to overcome this?
Integrate the time-tested OKR methodology to align your objectives with measurable key results to keep your startup from derailing. Consistent monitoring of key metrics will allow the founders to course correct in time. Profit.co’s OKR software, our strategy, and task management modules, including employee engagement and development, is a power-packed SaaS platform to leverage your Startup.
Objective 1: Build a Minimum Viable Product Prototype
The cornerstone of any business is a great product, and founders must ensure it addresses a key problem and is profitable and scalable.
KR 1: Create a prototype with a minimum of 10 Key Features
KR 2: Identify five customer pain points for problem-solving
KR 3: Analyze and review the design plan every week
Objective
Build a Minimum Viable Product Prototype
Target Date: Q3-2022
Visibility: All Employees
Key Results
Create a prototype with a minimum of 10 Key Features
# of featuresIdentify five customer pain points for problem-solving
# of pain pointsAnalyze and review the design plan every week
Percentage TrackedObjective 2: Scale Up Marketing Functions & Metrics to a new level
However great a product, it must be backed by sound marketing. Having an objective tailored around it and tracking it with key metrics can be vital to the success of a startup.
KR 1: Generate at least 800 product signups per week
KR 2: Increase the # of landing pages from 25 to 125
KR 3: Increase the website traffic through the organic channels from 10K to 70K
Objective
Scale Up Marketing Functions & Metrics to a new level
Target Date: Q3-2022
Visibility: All Employees
Key Results
Generate at least 800 product signups per week
# of SignupsIncrease the # of landing pages from 25 to 125
# of Landing PagesIncrease the website traffic through the organic channels from 10K to 70K
Organic Web TrafficObjective 3: Improve User Adoption
Customer is king and more so in a SasS business, and user-friendliness is a primary requirement in adoption. A startup should formulate an objective around it and diligently track progress using metric-driven key results.
KR 1: Ensure Net Retention Rate (NRR) is maintained above 110%
KR 2: Reduce the churn rate from 15% to 5%
KR 3: Increase the NPS from 70% to 90%
Objective
Improve User Adoption
Target Date: Q3-2022
Visibility: All Employees
Key Results
Ensure Net Retention Rate (NRR) is maintained above 110%
NRRReduce the churn rate from 15% to 5%
Churn RateIncrease the NPS from 70% to 90%
Net Promotion ScoreObjective 4: Accelerate Revenue Growth
All startups want to make tons of money, and only those with a clear objective or strategy around it with measurable key results can track the revenue growth and address pain points promptly.
KR 1: Generate $500k in New ARR.
KR 2: Generate $500K revenue through implementation and training
KR 3: Onboard 10 new logos
Objective
Accelerate Revenue Growth
Target Date: Q3-2022
Visibility: All Employees
Key Results
Generate $500k in New ARR.
ARRGenerate $500K revenue through implementation and training
Revenue from ImplementationOnboard 10 new logos
New LogosObjective 5: Improve Finance Metrics
Finance is the backbone of any company, and it has become one of the primary focus areas in a startup. A sound objective to improve the startup’s financial future is critical for success.
KR 1: Decrease the monthly Burn rate from 2x to 1x
KR 2: Increase Monthly Recurring Revenue from $500K to $1M
KR 3: Decrease the CAC payback period from 36 to 24 months
Objective
Improve Finance Metrics
Target Date: Q3-2022
Visibility: All Employees
Key Results
Decrease the monthly Burn rate from 2x to 1x
Burn RateIncrease Monthly Recurring Revenue from $500K to $1M
MRRDecrease the CAC payback period from 36 to 24 months
Payback PeriodObjective 6: Improve Cashflow
Adequate Cashflow is vital to cover the incidental expenses, and it is also essential to implement the projects according to the startup road map. Making sure to track the cash flow by measurable key results can provide information on availability or lack thereof.
KR 1: Raise $4M seed funding from VCs and Investors
KR 2: Bring down the accounts receivables from $600K to $200K
KR 3: Ensure 40% of revenue growth rate
Objective
Improve Cashflow
Target Date: Q3-2022
Visibility: All Employees
Key Results
Raise $4M seed funding from VCs and Investors
Seed fundingBring down the accounts receivables from $600K to $200K
Accounts receivableEnsure 40% of revenue growth rate
Net RevenueObjective 7: Implement Market Research Process
Market research is an essential component in understanding the customer. Much depends on the research data and how we can leverage that towards product improvement. Having an exclusive Objective with measurable metrics to track this aspect will help in a successful startup.
KR 1: Achieve a 25% increase in product testing.
KR 2: Achieve a CSAT score of above 80% every quarter
KR 3: Ensure 80% of the customer’s feedback is implemented
Objective
Implement Market Research Process
Target Date: Q3-2022
Visibility: All Employees
Key Results
Achieve a 25% increase in product testing.
Product TestingAchieve a CSAT score of above 80% every quarter
Customer SatisfactionEnsure 80% of the customer’s feedback is implemented
Feedback ImplementationObjective 8: Improve Customer Delight
Customers are the drivers of a product and are very important for the success of a startup. Improving customer delight objectives and tracking them to be successful is essential for a startup.
KR 1: Decrease the customer’s average onboarding time from 20 mins to 5 mins
KR 2: Decrease average response time for customers contacting via phone from 10 minutes to 5 mins
KR 3: Decrease the Average response time for customers contacting via chat from 60 secs to 20 secs
Objective
Improve Customer Delight
Target Date: Q3-2022
Visibility: All Employees
Key Results
Decrease the customer’s average onboarding time from 20 mins to 5 mins
Onboarding TimeDecrease average response time for customers contacting via phone from 10 minutes to 5 mins
Support Response TimeDecrease the Average response time for customers contacting via chat from 60 secs to 20 secs
Support Response TimeObjective 9: Build a Strong Management Leadership
Leaders are the drivers of any organization. Developing and empowering a team to fit managerial positions is critical in a startup. All startups should have an objective dedicated to this goal aligned with measurable key results.
KR 1: Hire a CRO to manage the Revenue Engine.
KR 2: Facilitate a leadership development program for 25 employees(Director and above).
KR 3: Achieve 100% completion rate for the LDPs.
Objective
Build a Strong Management Leadership
Target Date: Q3-2022
Visibility: All Employees
Key Results
Hire a CRO to manage the Revenue Engine.
Task TrackedFacilitate a leadership development program for 25 employees(Director and above).
Task TrackedAchieve 100% completion rate for the LDPs.
Percentage TrackedObjective 10: Improve the recruitment process
Recruiting and retaining talent is a crucial activity of an organization. In a startup, due to a limited number of employees, the recruitment process must be tailor-made to suit the organization.
KR 1: Maintain cost per hire rate between $4000 to $5000
KR 2: Curtail the new hire turnover rate from 8% to 1%.
KR 3: Conduct three employee Referral program
KR 4: Fill in 20 job openings.
Objective
Improve the recruitment process
Target Date: Q3-2022
Visibility: All Employees
Key Results
Maintain cost per hire rate between $4000 to $5000
(CPH)Cost Per HireCurtail the new hire turnover rate from 8% to 1%.
Turnover RateConduct three employee Referral program
# of employee reffere..Fill in 20 job openings.
# of openingsConclusion:
Successful startups that end up as unicorns have different stories to back their success. The narrative in these success stories is how they periodically measured their strategy. OKR methodology has been an anchor for the tech titans of our generation like Google and Intel. These startup OKRs by Profit.co can guide you on your path to becoming unicorns of the future. The objectives are linked to suitable metric-driven key results so that the progress can be tracked. Book a free demo with our team to catapult your startup into the Fortune 500 company of the future.