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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

In product business it is often measured over multiple purchases and assumptions are made about the repeat rates and in the enterprise or services world LTV can be based on churn rates, which are notoriously hard to predict in an early-stage business. Poorly calculated LTVs can become BVs (bankruptcy values).

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Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

Far more common is a need to acquire customers through a series of steps like SEO, SEM, PR, Social Marketing, direct sales, channel sales, etc. Extensive use of software to automate all processes such as SEO, SEM, social networking, lead scoring, lead nurturing, CRM, etc. that will cost the company significant amounts of money.

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These Innocent Hiring Mistakes Can Kill Your Startup

Transformify

Your team is directly correlated with the valuation of your startup. All of the above is true, but it is also true that many startups have failed because they hired too early, too fast, or fired too late. However, you can’t utilize their time as you are still at an early stage. Team comes first.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

While the CAC ratio helps SaaS businesses at scale to manage their Sales and Marketing spend, the SLC is a helpful framework for early stage businesses before you have meaningful data. As private investors and public acquirers become more SaaS savvy, multiples of CMRR will likely become the primary valuation metric. anecdotes.