The Best Founders Focus on What Moves Their Business Forward

Starting and growing a business is exhilarating, but it’s easy to get caught up in distractions. The best founders know that success isn’t about doing everything—it’s about doing the right things. They stay focused on what moves their business forward by identifying their North Star Metric and key performance indicators (KPIs) that guide every decision they make.

Why Focus Matters

Many entrepreneurs struggle with prioritization. It’s tempting to chase the latest marketing trends, launch multiple products at once, or spend hours perfecting a logo. But without focus, even the most promising startup can stall.

Successful founders prioritize high-impact activities that directly influence their company’s growth. They ask:

What’s the one metric that best reflects our progress?
Which activities drive revenue, customer retention, or engagement?
How can we track success in a measurable way?

By answering these questions, founders can cut through the noise and allocate their time, energy, and resources where it truly counts.

The Power of a North Star Metric

The North Star Metric (NSM) is the single most important metric that defines long-term success. It’s not just about revenue—it’s about customer value and sustainable growth.

Examples of North Star Metrics:

Airbnb: Number of nights booked
Facebook: Daily active users
Amazon: Purchases per customer
Your Startup? What single metric best defines success for you?

Your North Star Metric should be measurable and actionable—something that, when improved, leads to growth and customer satisfaction.

Example: If you run an e-commerce business, your North Star might be repeat purchase rate, because it directly reflects customer loyalty and revenue potential.

Tracking Key Performance Indicators (KPIs)

While the NSM provides direction, KPIs break down progress into specific, measurable goals. These can include:

Revenue Growth (e.g., % increase in sales)
Customer Acquisition Cost (CAC) (How much does it cost to get a new customer?)
Customer Lifetime Value (CLV) (How much revenue does a single customer generate?)
Conversion Rates (How many visitors become paying customers?)
Churn Rate (How many customers stop using your product?)

Founders who track their KPIs can make data-driven decisions, adjusting their strategies based on real results rather than guesswork.

How to Stay Focused on What Moves the Needle

Set Quarterly Goals – Define clear, measurable targets based on your KPIs.
Eliminate Distractions – Not every idea needs to be executed immediately. Focus on what aligns with your NSM.
Measure & Adjust – Regularly review performance metrics and pivot if necessary.
Stay Customer-Centric – Ensure every decision improves the customer experience and drives value.
Delegate or Automate – Free up time by outsourcing low-impact tasks.

Final Thoughts

The best entrepreneurs don’t get distracted by vanity metrics or fleeting trends. They focus on the numbers and strategies that truly drive their business forward. By identifying a strong North Star Metric and tracking key KPIs, you can ensure that every action contributes to meaningful growth.

If you're not sure what your North Star Metric should be, take a step back and ask: What truly drives my business? The answer will guide you to success.

Next Steps for You:

💡 Define your North Star Metric – Write it down and commit to it.

📊 Identify 3-5 KPIs that reflect your startup’s growth.

📝 Start tracking progress and eliminate anything that doesn’t contribute to these goals.

🚀 Need help structuring your business goals? Our quarterly and monthly templates in the Journal for Startups can keep you on track!