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Visualizing the Interactions Between CAC, Churn and LTV

A Smart Bear: Startups and Marketing for Geeks

If you like this, go see his Shockwave Innovations blog ) Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities, equity). Now let’s cover those nuances I mentioned.

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The Most Effective Early-Stage Growth Strategies for Emerging Businesses

ReadWriteStart

Limited brand equity. If you focus too much on short-term measures, you’ll have trouble sustaining long-term growth in a cost-efficient way. For example, if the cost per click (CPC) is $0.50 In some situations, that renders the marketing budget exhausted from the start. Because people already know it. You need to find a balance.

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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. The buyer is shopping for equity in startups and the seller is looking for cash in exchange for equity and shared governing control of his or her company.

Cap Table 336
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9 Things That Take a Pitch From Good to Great

Up and Running

Investors want to hear about your first customers, other investments put into the company (including your own sweat equity), key media placement, signed letters of intent (LOI) to purchase/partner, product and customer milestones , key hires, and so on. percent average conversion rate. 5 percent monthly churn rate.

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Recognising good growth

The Equity Kicker

High churn rates. High return rates. revenues per user > cost of acquisition + cost of delivery). High referral rates. This morning I thought I would say more about what that means, starting with characteristics of unsustainable growth: Adding users who are unlikely to engage (e.g. Loyal customers.

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Analysing cohorts made easy

The Equity Kicker

For marketplaces and ecommerce companies that means revenues (net of VAT) less any discounts or rebates, the cost of the physical item, delivery costs and the cost of returns. You can work out how long it will take to pay back varying customer acquisition costs (CAC).

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Shark Tank Season 4 week 10 breakdown

Lightspeed Venture Partners

They believed that they could get customer acquisition costs to the $10-12 range, but as Cuban points out, that was just hope, they had no evidence to back this up. All e-commerce businesses should be examined through the lens of customer acquisition cost and lifetime value. The cost of shipping and handling is at least 4 x $2= $8/mth.