VC Cafe

FEBRUARY 21, 2023

They encompass the effectiveness of marketing (the startup’s ability to reach and resonate with target customers) and stickiness (the product’s ability to deliver value to customers over time). In this post, we’ll take a closer look at the benchmarks on conversion, retention and churn for the key business models.

Retention 109

Retention Conversion Churn Rate B2C 109

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 17, 2011

.”) So although it’s a single number combining several factors, and we know that averaging can obfuscate , I think cancellation rate is a good overall measure of how well the company is servicing its customers, and with tools like our detailed log you can still break apart the single number into concrete, actionable influences.

Business Model 245

Business Model Metrics Engineer Technical Review 245

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. Even for startups, it takes years for a new product to become good enough to demand many millions of dollars in revenue.). Startups shouldn’t act smug about this.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Startup Professionals Musings

MAY 15, 2019

Steve Blank via Flickr by jdlasica I see more and more entrepreneurs who seem to have everything going for them – vision, motivation, passion, even a good business plan, product, and money, and yet they can’t close customers. Great businesses begin with a customer problem that has a big and monetizable pain point.

Startup 245

Startup Angel Investor Technical Review Incubator 245

Startup Professionals Musings

JUNE 26, 2020

To be clear, I define a product specification as the technical definition of your product, to be used for development and testing purposes, with a quick business summary for context. Use non-fuzzy terms to quantify customer value. Provide specifics on the customer business model. Budget time and dollars for each.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

Steve Blank

OCTOBER 15, 2019

Once upon a time every great organization was a scrappy startup willing to take risks – new ideas, new methods, new customers, targets, and mission. HR processes, legal processes, financial processes, acquisition and contracting processes, security processes, product development and management processes, and types of organizational forms etc.

Government 315

Government Technical Review Acquisition Metrics 315

SoCal CTO

MARCH 5, 2007

However, Elgg could power 100,000 networks and it would make no difference - there is no revenue stream as we give everything away under a GPL license. There are quite a few other Software Development Companies in Southern California working on open source and/or freemium business models. I understand his frustration.

Open Source 150

Open Source Business Model Technical Cofounder Southern California 150

www.forentrepreneurs.com

FEBRUARY 2, 2010

Blog About Log in Register Startup Killer: the Cost of Customer Acquisition In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

crowdSPRING Blog

FEBRUARY 26, 2023

Popular subscription businesses such as eCommerce subscriptions, streaming services, and more have grown drastically over the years as they’re more convenient and affordable. Benefits of a subscription business Subscription businesses may be affordable and convenient to customers, but they also benefit business owners greatly.

United States 68

United States eCommerce Business Model Technical Review 68

Steve Blank

APRIL 1, 2020

But other businesses like law firms, contracting firms, real estate firms, will take hits, too. Your customers will no longer be your customers. Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? Out of business? Your customers start buying.

South Korea 333

South Korea Salary Business Model China 333

Startup Professionals Musings

OCTOBER 17, 2018

According to most investors I know, traction is some clear evidence that the “dogs are eating the dog food” – usually meaning that you have at least one customer paying full price for your solution. Another term often mentioned is “momentum,” or growing visibility and advocacy within your customer set.

Advisory Board 199

Advisory Board Technical Review Metrics Business Model 199

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Rational burn profile, up to 50% of revenue at close, scaling down.

Revenue 60

Revenue Technical Review Software Review Equity 60

YoungUpstarts

AUGUST 24, 2017

Subscription business models have been around for a pretty long time, but thanks to modern technology, this model has evolved from milk or newspapers delivery to a versatile eCommerce experience. Subscription business brings recurring revenue. It is a bootstrappable model. It is a bootstrappable model.

Churn Rate 149

Churn Rate eCommerce Business Model Bootstrapping 149

Steve Blank

NOVEMBER 16, 2009

I was in New York last week with my class at Columbia University and several events made me realize that the Customer Development model needs to better describe its fit with web-based businesses. In it, I got asked a question I often hear: “What if we have a web-based business that doesn’t have revenue or paying customers?

Customer Development 219

Customer Development Web Developer Customer 219

ReadWriteStart

MARCH 8, 2021

They want to snowball their customer acquisition, attracting thousands of new people to the brand, and reach diverse new audiences in new locations. They want to open new offices, generate more revenue, and ultimately, secure higher profitability. . Every startup entrepreneur wants to see their company grow. Visibility .

Startup 127

Startup Retention Acquisition Agile 127

ConversionXL

FEBRUARY 3, 2022

Growth hacking is a practice that aims to acquire as many customers as possible while spending as little money as possible. The faster this process can be repeated, the more likely they’ll find scalable, repeatable ways to grow the business.”. Rather than run marketing campaigns to pull customers away from its rival, it experimented.

Retention 113

Retention Marketing Acquisition Channel 113

VC Cafe

OCTOBER 23, 2022

The CEO shared the revenue target for the year at X, and the revenue target for next year at 3X. One of the board members asked a simple question: “Why is revenue our North Star KPI? One of the board members asked a simple question: “Why is revenue our North Star KPI?”

Metrics 179

Metrics Revenue B2C Portfolio 179

YoungUpstarts

SEPTEMBER 16, 2014

by Jack Narcotta, Devices Analyst at Technology Business Research. As with any large-scale acquisition, there is a degree of risk for Microsoft, especially in consumer-oriented markets such as gaming. Microsoft’s $2.5 Analogous to Amazon’s $970 million purchase of internet video site Twitch.tv

Acquisition 157

Acquisition Azure Merger Sweden 157

ConversionXL

SEPTEMBER 15, 2020

Like any popular business term, “customer centricity” is often abused by businesses that shoehorn it into their core values. It’s actually better not to claim customer centricity if you can’t get people across your business to really care about your customers. Find new ways to fix old customer pains points.

Customer 85

Customer Community Revenue Software Review 85

Startup Professionals Musings

JANUARY 18, 2014

I see more and more entrepreneurs who seem to have everything going for them – vision, motivation, passion, even a good business plan, product, and money, and yet they can’t close customers. Great businesses begin with a customer problem that has a big and monetizable pain point. Nail the business model.

Entrepreneur 283

Entrepreneur Startup Angel Investor Technical Review 283

YoungUpstarts

AUGUST 14, 2015

by Jack Narcotta, Devices Analyst at Technology Business Research. Lenovo’s modest overall revenue growth in calendar 2Q15 – 3.1% year-to-year revenue growth in calendar 3Q15 to $10.9 year-to-year to $10.7 Additionally, lower profits in PCs – operating profit fell 7.8% year-to-year to $7.3 and Europe.

Revenue 100

Revenue Technical Review Lean Mobile 100

Startup Professionals Musings

OCTOBER 8, 2022

If you think that financial modeling for a new business is arcane magic, limited in value to financial wizards and professional investors, then you have been listening to the wrong advisors. Don’t try to build the “ultimate” business model, for all possible alternatives, in multiple business domains.

Conversion Ratio 368

Conversion Ratio Startup Business Model eCommerce 368

Startup Professionals Musings

MAY 12, 2017

I see more and more entrepreneurs who seem to have everything going for them – vision, motivation, passion, even a good business plan, product, and money, and yet they can’t close customers. Great businesses begin with a customer problem that has a big and monetizable pain point. Nail the business model.

Startup 161

Startup Angel Investor Technical Review Incubator 161

Startup Professionals Musings

DECEMBER 17, 2022

Every entrepreneur thinks he can relax a bit after his business model is proven, funding is in place, and revenues are scaling as projected up that hockey-stick curve. Unfortunately, the market is changing so fast these days that any upward climb can level off quickly, as the core business growth begins to stall.

Hockey Stick 265

Hockey Stick Guerilla Acquisition Startup 265

YoungUpstarts

MARCH 27, 2019

Innovation not only impacts global economies and business models, but the quality of life of people. Innovation has changed the way people live, work and do business. Businesses can focus on two types of innovation: sustaining innovation and disruptive innovation. And they have the resources to win.

Technical Review 127

Technical Review Business Model Non-Compete Software Review 127

Startup Professionals Musings

DECEMBER 20, 2012

I see more and more entrepreneurs who seem to have everything going for them – vision, motivation, passion, even a good business plan, product, and money, and yet they can’t close customers. Great businesses begin with a customer problem that has a big and monetizable pain point. Nail the business model.

Startup 296

Startup Angel Investor Technical Review Incubator 296

Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue. Board Control.

Founder 245

Founder Technical Review CTO Hire IPO 245

A Smart Bear: Startups and Marketing for Geeks

JULY 23, 2013

Marketo filed for IPO with impressive 80% year-over-year growth in 2012, with almost $60m in revenue. of revenue, force-feeding sales pipelines with an unprofitable product. So no, this upside-down business model isn’t what a SaaS business should construct. SaaS companies earn their revenue over time.

Business Model 335

Business Model .Net Revenue IPO 335

Startup Professionals Musings

MARCH 25, 2023

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. A business only achieved critical mass by becoming cash-flow positive. Both have worked.

Valuation 235

Valuation Revenue Viral Retention 235

Startup Professionals Musings

MARCH 5, 2023

Bill was relentless in his focus on getting the software PC DOS project delivered, while continually challenging us with new business models. Let me be a bit more specific on how follow-up trumps ideas for success in the key challenges of a startup, or any small business: Networking with investors, partners, and customers.

Cofounder 389

Cofounder Startup Term Sheet Acquisition 389

Up and Running

NOVEMBER 23, 2020

Customers will assess the value of your product or service against a range of factors. As an unknown brand, you need to get customers to use your products or services; only then can factors like quality be assessed. A portion of your customers will pay more to get access to additional features regardless of the price point.

Acquisition 134

Acquisition Reputation SEO Cost 134

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Team, Product, Traction, Business Model and Market.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Startup Professionals Musings

JULY 9, 2017

An effective tool I see used more and more, as a prelude to a more detailed business plan, is the Business Model Canvas , first introduced by Alexander Osterwalder back in 2008. In my experience as a new business advisor, a business is nothing until people are aligned and work in sync. Key resources.

Business Model 143

Business Model Intellectual Property Startup Angel Investor 143

Steve Blank

OCTOBER 24, 2016

The launch of the Xbox and Kinect, and the acquisitions of Skype and Yammer happened on his shift. If the Microsoft board was managing for quarter to quarter or even year to year revenue growth, Ballmer was as good as it gets as a CEO. Services (Cloud, ads, music) have a very different business model. What’s Missing?

Azure 120

Azure Business Model Cloud Artificial Inteligence 120

Steve Blank

OCTOBER 24, 2016

The launch of the Xbox and Kinect, and the acquisitions of Skype and Yammer happened on his shift. If the Microsoft board was managing for quarter to quarter or even year to year revenue growth, Ballmer was as good as it gets as a CEO. Services (Cloud, ads, music) have a very different business model. What’s Missing?

Azure 120

Azure Business Model Cloud Artificial Inteligence 120

Startup Professionals Musings

SEPTEMBER 19, 2011

I see more and more entrepreneurs who seem to have everything going for them – vision, motivation, passion, even a good business plan, product, and money, and yet they can’t close customers. Great businesses begin with a customer problem that has a big and monetizable pain point. Nail the business model.

Startup 286

Startup Angel Investor Technical Review Incubator 286

Mucker Lab

APRIL 6, 2023

Are there types of companies, market segments, industries, or business models where PLG does not make sense? If you go back to thinking about what kind of company is a great fit for PLG, there are two important criteria: The first one is your target segment, your customer size. This is awesome, but is this a fit for me? ”

Product 78

Product CTO Hire Startup Fractional CTO 78