You can’t be a product startup if you aren’t measuring revenue/employee number. Unless you are superbly well funded and have lots of cash to throw away, each hire has to have specific KRA and most importantly, the product/service needs to be delivered in the most optimum form.

In fact, at the UnPluggd event, this was one of the key takeaway from Sri Krishna’s session [+ the ratio of sales/engineers in a technology business].

Here is a great piece of data compiled for the top technology companies. A look at the data will reveal the most important point about product businesses – Platform play, if done right can really fetch you money.  revenue per employee of tech companiesPlatform play makes people work for you and that’s what is visible with the company that tops this chart, i.e. Craiglist [30 employees and a revenue of ~$100mn).

Share your take on whether Rev/Employee is the most aggressive metrics to go for startups or not?

 

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