There are 2 types of metrics early-stage social entrepreneurs should take into account to succeed:
The metrics that move you forward.
The metrics that tell you the right direction to take.
The first are progress metrics.
They provide an idea of what you’ve accomplished so far and are within your control.
For instance, when testing your Minimum Viable Product (MVP), progress metrics could be the number of calls made to the first customers for feedback.
The second are impact metrics.
They assess the effects of your actions on stakeholders, considering their behaviors and local context.
These metrics depend on both your efforts and external factors.
When testing your MVP, impact metrics could involve the percentage of users who acknowledge your product as a solution and the degree of improvement it brings to their lives.
Both metrics are essential for success:
Progress metrics keep you motivated.
The entrepreneurial journey can be a rollercoaster with significant ups and downs.
Staying accountable and focused is crucial to avoid setbacks or abandoning the venture.
Daily positive reinforcement from progress metrics fosters a sense of accomplishment.
Impact metrics help you determine what is worth your effort.
Each solution comes with a set of assumptions that require validation to ensure the desired impact is achieved.
Impact metrics allow you to test these assumptions, identify what is working, and pinpoint areas for improvement.