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A CPA provides input on tax structure and metrics, and assists with duediligence related to your industry. You need to ask questions and perform duediligence before you invest substantial time and money. Bankruptcy? Think about your employee and ownership hats. Must you wear both simultaneously? Who owes what?
Although we got some early traction, we were unable to prevent a bankruptcy from happening in October 2011. The metrics that matter the most are returning customers (user retention), turnover per customer and viral growth (k-factor). Building a technology company within an extremely competitive market is difficult.
When Satya and I started Homebrew in 2013 one of our bets for the coming decades was that non-traditional acquirers would become more aggressive in their pursuit of technology startups. We had our first taste of this trend playing out early in 2016 when GM acquired self-driving tech startup Cruise for north of $1b.
Rebranding is one way to overcome the odds of a partnership breakage or a bankruptcy, showcasing the good points of your business. Give the important people in your organization due credit and never forget their contributions. Be Ready With Advanced Technology. Why are you rebranding your business? Treat your brand as a hero.
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Poorly calculated LTVs can become BVs (bankruptcy values). The problem with LTV is that many SaaS companies assume customer lifetimes of 5+ years and of course you can’t reasonably predict that because doesn’t take into effect technology or competitor disruptions that may have profound impacts on churn or pricing. What is the LTV?
Most people want to visit your site, do some research, go away, visit other sites, come back to yours, get more confidence about your brand, go back to Google and compare reviews/prices, come back to your site and add the product/service to the cart, go and ask their spouse/boss for permission, come back and buy from you (or the other site).
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