Here goes nothing

Fri, Nov 13th 2015

Writing your first ever blog post on Friday the 13th can NOT be a good sign... But here we find ourselves.

My first post is about a metric I think I invented that I love to use to evaluate scalability:

It is the ratio of headcount to monthly active users (MAU) (Headmau would be a good name). I've never seen this evaluated bfore and it seems like a no-brainer way to show how virility or well a company can scale: Aka how many users they can acquire with how little overhead. There are two versions of this, Eposidoc and Linear. Episodic is just a snapshot of current employees to MAU. Linear takes the slope of headcount growth over the last X months divided by the slope of MAU growth over the same X months (using the slope of the trendline). Alternatively, you could just plot headcount vs users over the past X months, create a chart of that to predict growth. This seems like it would be a fascinating way to look at high growth companies. I'd imagine this would be best for social media companies but I do think it applies to all verticals: How many users can you get with how little headcount investment.

For example, Snapchat and Instagram would perform insanely well with the Headmau5 metric, having hundreds of millions of employees and under 20 employees. Probably still some details to hash out but conceptually it makes a lot of sense to me as something startups should strive for.