Vanity metrics

0:03 Welcome to business purpose and clarity with petri I'm your host we talk about startup life insights practical tips mistakes failures and everything between why are we talking about something which sounds like a waste of time good point and exactly because most likely or at least some of the founders are doing exactly that they are focusing on they are doing things to look good show off get validation wrong type of validation all those things see now but they're not really building traction making sure that you will get money in the bank account you right way I mean the way where customers.

1:07 Could old-fashioned way give you money for the services rendered it's easy to think about in a ways where yeah if we get this person on board it will look really nice in our investor if we get that person to help us to do things they have so awesome track record I'm sure they will open doors and do these other things when you are in doubt maybe this helps if nobody knows you cannot tell anyone whatever it is what you're now deciding to do or choosing someone or doing something would you still do it would it still matter would you get the benefits even though you cannot tell anyone there's another case as well it's easy to show concrete evidence facts but it doesn't bring the results in this case I'm talking about another type of metrics.

2:10 This can be seen in business decks as well in presentations of any kind where you telling where you spend the money what do you do well that's the easy part you can always spend the money you're spending these salaries you buying these items but it does not tell anything why you do it what's the context why are you spending all that money for these people what is it what do you actually really want to do what is the benefit the end result what do you achieve by using all that money that's the important thing the results the actual results how does that expenditure help you to de-risk your make it to another level can your customers improve the product in a way with clearly benefits and and you can show that it actually bring more money and it makes your valuation go up not.

3:16 Just because you're spending more money do you agree with me that vanity matrix is something which is quite easy to see on other people are you sure you are not doing those things at least in some level yourself as well.