Remove Cost Remove Metrics Remove Revenue
article thumbnail

Startup Metrics

TechEmpower

One way to approach that last question is to use this simple model: Customer Acquisition Cost (CAC) How will your business reach prospects? And how much will it cost to win them? Next, define what you need from a metrics and reporting standpoint. Apply costs to each channel. How will you convert them?

Metrics 260
article thumbnail

Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy. Customer acquisition cost.

Metrics 150
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

10 Metrics To Drive Your Annual Business Review

Startup Professionals Musings

What I’m talking about here is a level of discipline and skill necessary to collect and analyze the relevant business data, known as metrics. As the end of the year approaches, it’s a good time for every startup to assess the metrics, technology, and platforms they’re using to manage the business. Cost of customer acquisition.

Metrics 252
article thumbnail

7 Key Factors Obscure Your Customer Acquisition Costs

Startup Professionals Musings

As a business consultant and angel investor, I often ask for your own assessment of marketing ROI , or customer acquisition cost (CAC). You must have a strong Chief Marketing Officer (CMO) with a clear strategy for spending, and metrics to gauge results. You have to determine how to share these costs and credit.

article thumbnail

Praying to the God of Valuation

Both Sides of the Table

And then in the late 90’s money crept in, swept in to town by public markets, instant wealth and an absurd sky-rocketing of valuations based on no reasonable metrics. We had nascent revenues, ridiculous cost structures and unrealistic valuations. Until we weren’t. 2001–2007: THE BUILDING YEARS The dot com bubble had burst.

Valuation 466
article thumbnail

Should Startups Focus on Profitability or Not?

Both Sides of the Table

If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. ” If you’re not profitable you’re purely a cost center to them. Simplifying: Revenue -. Cost of Goods Sold (COGS) =.

Startup 418
article thumbnail

5 Stages Of The Market Lifecycle Gate Startup Success

Startup Professionals Musings

Everyone knew these had potential, but had not demonstrated success to date due to infrastructure and support requirements, or cost constraints. Typical valuations range from 3x-5x revenues. Investors are rushing to offer ridiculous valuations, even to pre-revenue startups, to keep from missing out.