What it is: MoM compares data or performance indicators between two consecutive months. It is commonly used to analyze growth rates, revenue changes, or other monthly trends in business metrics.
Why it is important: MoM analysis helps identify short-term changes and trends in business performance. It provides insights into the direction and pace of growth, revenue fluctuations, and the effectiveness of strategies implemented every month. By tracking MoM metrics, startups can make timely adjustments to their operations, marketing efforts, and resource allocation.
Formulas: MoM % Change = ((Current Month Value - Previous Month Value) / Previous Month Value) * 100
How to use it in the context of startups: Startups can use MoM analysis to monitor and assess the effectiveness of their growth strategies, marketing campaigns, and revenue generation. By comparing key metrics every month, startups can identify patterns, react to changes, and optimize their business operations.