Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. Poorly calculated LTVs can become BVs (bankruptcy values). Customer acquisition cost. The first input is CAC.

Metrics 150

Metrics Cost Acquisition Startup 150

David Teten

DECEMBER 3, 2019

Pacer is useful to search prior litigation, bankruptcies, etc. Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

ConversionXL

OCTOBER 30, 2019

The Pareto Principle states that you get 80% of your revenue from 20% of your customers. Metric examples: Monthly recurring revenue (MRR); Average revenue per account (ARPA); Engagement; Customer lifetime value (LTV); Upsell/cross-sell conversion rates. Do you include revenue sharing with other parties?

Retention 48

Retention Metrics Churn Rate Acquisition 48

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Michael Kassing.

Software Review 48

Software Review North America Europe Metrics 48