Side Hustle School Ep. 3191 - Q&A: “What KPIs should I track for my software biz?”
Sep 26, 2025
In this episode, the focus is on which key performance indicators (KPIs) truly matter for a small SaaS business. Instead of overwhelming metrics, three crucial numbers are highlighted: tracking monthly recurring revenue trends, closely monitoring churn rates, and selecting a single engagement signal to measure user stickiness. These streamlined insights aim to guide growth decisions effectively, making analytics manageable for small teams.
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Momentum Trumps Metric Overload
- At micro-scale, momentum matters more than tracking every possible metric.
- When costs are covered, each additional subscriber becomes almost pure profit, so prioritize growth.
Focus On MRR Direction
- Track Monthly Recurring Revenue (MRR) and focus on its direction rather than the absolute value.
- Aim for a positive MRR delta for three months in a row to confirm growth momentum.
Keep Churn Low
- Monitor churn carefully because each lost customer matters more at small scale.
- Keep monthly churn under about 3% to avoid losing momentum with ~50 customers.
