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Forget about traction and hockeystick growth. In other words, if you can get 1000 people to come to your website consistently for under $5, then this businessmodel works for you. You will use your fridge for a decade or more so the retention here is high. 3) Does your business have naturally short retention?
Forget about traction and hockeystick growth. In other words, if you can get 1000 people to come to your website consistently for under $5, then this businessmodel works for you. You will use your fridge for a decade or more so the retention here is high. 3) Does your business have naturally short retention?
What matters is proving the viability of the company’s businessmodel, what investors call “traction.&# Of course this is not at all true of many profitable small businesses, but they are not what I mean by startups.) People often forget the most important part of the hockeystick: the long flat part.
That’s going to help you put your financials together, and it’s also going to help because everybody loses customers, so in your model you have to be able to say what the retention rate is of that customer as well, and the churn rate. These are the metrics for the SaaS model that we have. This is what we track.
Do not talk about disruptive businessmodels; the ones who disrupt don’t talk about it. They are too busy disrupting. The reality is that it’s hockeystick growth—you have to spend tons of money before you see any results (and then the results are exponential).
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