Cracking the Code

OCTOBER 10, 2008

Only after reaching $1M in CMRR should you consider hiring European sales and services execs behind customer demand. 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. Michael Kassing.

Software Review 48

Software Review North America Europe Metrics 48

David Teten

DECEMBER 3, 2019

Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. Lean Case provides standard business models & metrics, so you can apply a standard approach to business planning, modeling, and profitability tracking.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Lessons Learned

MARCH 21, 2013

Here's what they have to say about churn rates in SaaS businesses: The best SaaS sites or applications usually have churn ranging from 1.5% Mark MacLeod, Chief Corporate Development Officer at Freshbooks, says that you need to get below a 5% monthly churn rate before you know you’ve got a business that’s ready to scale.

Analytics 167

Analytics Lean Metrics Churn Rate 167

Lightspeed Venture Partners

NOVEMBER 19, 2012

With a 15% churn rate, that suggests about $7 in lifetime value. This business can’t work. But I think that given the demand, he could have held firm on valuation and either given up slightly less equity or taken in slightly more money for the same dilution. Adding these up gives $15/mth.

Pre-Money Valuation 166

Pre-Money Valuation Alabama Valuation Churn Rate 166

Up and Running

JUNE 19, 2014

My local heating repair company is even getting in on the booming demand for subscription services and has launched a $10/month subscription service that includes basic system tune-ups, maintenance, and discounts on larger maintenance services. Churn is the rate at which customers are canceling and leaving your service.

Forecast 92

Forecast Sales Churn Rate Revenue 92

ReadWriteStart

MARCH 3, 2021

Growing a business is always challenging, but it’s often the hardest in the earliest stages of development. You’ll be operating with limited resources, limited knowledge, and quite possibly, a business model poised to change in the immediate future.

Early Stage 125

Early Stage PPC Retention Churn Rate 125

maplebutter.com

JANUARY 8, 2013

I’m not afraid to pick up the phone, cold call someone, use LinkedIn to find someone who’s recently left a company that might be considered competitive and ask them for advise around the business model and marketplace. Then decide if you can build more value on either end of that process to demand a higher premium. 5% I believe.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Venture Chronicles

DECEMBER 15, 2011

If you are interested in freemium business models or any of the variations on the theme, this is well worth reading however I take issue with a couple of points. This is an interesting discussion and the body of work that can be studied is relatively small and fluid given the immaturity of freemium as a business model.

Churn Rate 57

Churn Rate .Net Business Model B2C 57

Up and Running

APRIL 27, 2012

No business plan ” does not mean no planning. So instead they plough on building and coding, without paying attention to the fact that demand may be weak; customer input has been negligible; and cash is dwindling. This detail gets lost in the noise. “ If they build it, they will come. But they don’t.

Metrics 68

Metrics Nigeria Ratchet Churn Rate 68