Both Sides of the Table

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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

Perhaps the most misused terms I see these days from entrepreneurs involve CAC (customer acquisition costs) and LTV (life time value) and a lack of understanding these critical components is driving many companies to premature failure. CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition.

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Why The Haters are Wrong About Growth Hacking

Both Sides of the Table

I have seen many teams pour tons of money, time and effort into PR strategies without thinking about how product tweaks could drive more consumption, more retention and more referrals. It’s why some companies are testing whether building applications on KIK might lead to better customers acquisition. Doesn’t.

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How Startups Can Use Metrics to Drive Success

Both Sides of the Table

Customer Acquisition. Those two things together would lower your acquisition costs nearly in half to $6.11. Ironically, there are times where it may actually pay to INCREASE your customer acquisition costs. Retention / Churn. Measuring customer acquisition is clearly not enough because not all customers stick around.

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Why Reed Hastings Should be Applauded for Netflix Split

Both Sides of the Table

Equally, the streaming business has got to accelerate content acquisition, focus on customer retention, improve streaming technologies to make it better for users / worse for competitors, and they’ve got to continually improve the UI.

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The Corrosive Downside of Acquihires

Both Sides of the Table

But the press (and I suspect many of the senior execs of these companies) don’t really explore the corrosive downside of these acquisition. If I don’t commit to millions of dollars of acquisitions I will … die? So I thought I would. And will investors allow a deal to happen in the first place. We get the mechanics.

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Some Quick Thoughts on Exits for Technology Startups

Both Sides of the Table

Remote teams can be higher retention for staff. Both can hurt you in an acquisition. You need to understand motives of buyer (talent, product, revenue, strategic purchase) and where you fit in. People hate to acknowledge that location of team matters. Often it does. Outsourcing can be cheap.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

When they look at buying your company they often think in terms of “how long will it take until I earn back the profits to pay for my acquisition price?” They got a bigger office space so their employees would feel comfortable and they could improve employee retention. Let’s look at years 3-5 of the two companies.

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