When Should I Implement the Rule of 40 Metric?

Episode 79 – When Should I Implement the Rule of 40 Metric?

In episode #79, I address the Rule of 40 metric. It’s back in style but many blog posts say this is a “big” company metric. Should I calculate the Rule of 40 if I’m less than $10M ARR?

- What is the Rule of 40?

- When should I measure?

- When is it a red flag?

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