2013 Pacific Crest SaaS Survey

For Entrepreneurs

We worked together with Pacific Crest, an investment banking firm with a specific focus on SaaS, to survey 155 SaaS companies on a variety of topics such as growth rates, CAC (cost to acquire a customer), gross margins, churn rates, etc. Business Model SaaS CAC churn

2014 Pacific Crest Saas Survey- Part 2

For Entrepreneurs

This week we dive into the results from Part 2 of the survey where we compare application delivery methods, operational costs and gross margins, contract terms, churn rates, capital requirements and accounting […]. Business Model SaaS Startup Help Last week I shared the results from Part 1 of our survey in which 300+ SaaS companies shared data on their growth and go-to-market strategies.

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This Is Why You Should Start A Subscription Box Business

YoungUpstarts

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.

Shark Tank Season 4 week 10 breakdown

Lightspeed Venture Partners

Season 4 of week 10 of Shark Tank was interesting because two of the pitches were for internet businesses that I could imagine seeing in my day job as a Silicon Valley Venture Capitalis t. They are seeing an 85% monthly renewal rate. This business can’t work.

Startup Benchmarks

VC Cafe

All Good to Great companies began the process of finding a path to greatness by confronting the brutal facts about the reality of their business. Is my churn rate below the category average? Benchmarks are typically specific to stage/business model/geo.

B2C 124

When Customers Make You Smarter

Steve Blank

Here’s what happened when an extraordinary Digital Health team gained several critical insights about their business model. Having a multisided market with five segments is a pretty complicated business model.

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).

Freemium Mechanics

Venture Chronicles

If you are interested in freemium business models or any of the variations on the theme, this is well worth reading however I take issue with a couple of points. This is an interesting discussion and the body of work that can be studied is relatively small and fluid given the immaturity of freemium as a business model. However, a couple of things are increasingly apparent for people who are running these businesses.

14 Entrepreneurs Describe The BHAGs (Big Hairy Audacious Goals) For Their Business?

Hearpreneur

Often entrepreneurs and business owners create their daily, weekly, quartely or yearly goals around their business. I launched the business just a couple of months ago (July 15th) with great success. We don’t follow the invented here model.

SaaS CRO: What You’re Not Testing (But Should)

ConversionXL

Exhibit A: This is the table of contents from the article that currently ranks first for the keyword “conversion rate optimization tips.” Exhibit B: This is the best-selling course in the “Conversion Rate Optimization” category on Udemy. Product or onboarding milestone completion rates.

9 Things That Take a Pitch From Good To Great

Up and Running

I’ve seen hundreds of business pitches, and most of them—at best—are just okay. It must be because they think they need to address every aspect of their business plan in one fell swoop, but doing so makes them seem anxious, tense, and nervous. Outline your business model.

A Complete Guide to Forecasting Sales for Your Monthly Subscription Business

Up and Running

Some subscription models, like gym memberships and magazines, have been around for a long time, while other subscription businesses are brand new and innovative. Churn is the rate at which customers are canceling and leaving your service.

Practical Advice For Growing Your Software Business w/ Lars Lofgren of KISSmetrics

ConversionXL

When a business increases it’s webinar attendance by 1000% & net $40,000 in the first 3 sessions, you should probably listen to what they’re doing right. What Are The Mechanics Of A Business Growth Engine? Calculate Your Churn.

Why Metrics Get Worse With Scale

Seeing Both Sides

Conventional wisdom suggests that the most important metrics for a startup - such as unit economics, cost of acquisition, lifetime value, churn rates - typically get better with time. Take growth rate as a simple one. Churn rates are another metric that can get harder with scale.

SaaS CRO: What You’re Not Testing (But Should)

ConversionXL

Exhibit A: This is the table of contents from the article that currently ranks first for the keyword “conversion rate optimization tips.” Exhibit B: This is the best-selling course in the “Conversion Rate Optimization” category on Udemy. Renewal rate.

The Lean Analytics Cycle: Metrics > Hypothesis > Experiment > Act

Occam's Razor

To win in business you need to follow this process: Metrics > Hypothesis > Experiment > Act. Let's listen in as Alistair discusses the lean analytics model… The Lean Analytics Cycle is a simple, four-step process that shows you how to improve a part of your business.

3 Ways to do Cohort Analysis on SaaS Churn

Guy Nirpaz

This week, Jason Cohen wrote a very comprehensive blog on software-as-a-service churn: Deep Dive – Cancellation Rate in SaaS Business Models. Jason looks at many different definitions for the SaaS Cancellation Rate metric.

Recurring Revenue is Magic

Seeing Both Sides

But many years later, I began to appreciate that one of our core flaws was our business model. But the downside to our business model was that we did not have hardly any recurring revenue. . 3D printers, with their consumable resins, have a similar business model.

Lean Analytics

Startup Lessons Learned

Normal depends on what kind of business you're in, and what stage of that business you're at. Here's what they have to say about churn rates in SaaS businesses: The best SaaS sites or applications usually have churn ranging from 1.5%

How To Calculate & Increase Customer Lifetime Value

ConversionXL

I bring this up because time & time again, I see business owners reallocating budgets based on soundbite statistics and ending up with disastrous results. It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model.

How to Write a Business Plan for a Subscription Box Service

Up and Running

The subscription box industry is growing rapidly thanks to a steady revenue model and tapping into people’s love for surprises. But with so many people trying to get their share of the growth, many subscription box businesses fold within a year or two.

VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

But in business, you want a lot of partners. This is a great example of why data businesses have substantial moats. She is a model for us all! I use FullContact to import business cards and sync other data sets with my CRM.

Twitter Link Roundup #199 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! Empower Your Small Business: 4 keys to success, 2014 trends, content marketing – crowdspring.co/19PV71E.

Focus on awareness and metrics are keys to success

Up and Running

” As he told BBC News , “There’s only one strategy for growth we can have now and that is rolling up our sleeves and doing everything possible to make it easier for businesses to grow, to invest, to take people on.” Who needs a business plan when there is work to be done?”

How to Conduct a SaaS Funnel Audit

ConversionXL

After fighting tooth-and-nail to launch your SaaS business, the last thing you want is a leaky sales funnel to undermine all your hard work. Because even a small leak can snowball into a gushing cascade of leads, leaving your business bone-dry. Churn. Customer Churn.

8 Effective Ways Your Small Business Can Wow and Win Back Lost Customers

crowdSPRING Blog

Your customers are your business’s most valuable resource. In fact, businesses expect to lose customers. There’s even a term for measuring that loss – churn rate. What if you could resurrect those customers who have “ghosted” your business?

How to create a profitable Freemium startup (spreadsheet model included!)

andrewchenblog.com

Check out my list of featured essays How to create a profitable Freemium startup (spreadsheet model included!) As part of the talk, we worked on a spreadsheet model for freemium businesses that we didn’t get enough time to work on – so I’m going to cover it in this post!

How to Write a Business Plan

Up and Running

You’ve reviewed what a business plan is , and why you need one to start and grow your business. It’s time to dig into the process of actually writing a business plan. First, a few must-follow rules for writing a business plan. > One sentence business overview.

Webinar Recap: 14 Tips on How to Pitch and Get Funded

Up and Running

” Our featured speaker was Caroline Cummings, the VP of Business Development at Palo Alto Software. Needless to say, the webinar was absolutely packed with great tips on what it takes to pitch your business so that investors take notice. Then there’s businesses.

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

Cracking the Code

You validated our business model and added huge value to our efforts. Bessemer SaaS Law #1: Your key monthly business metrics are: CMRR (Committed Monthly Recurring Revenue), Churn, and Cash flow - “Bookings” is for suckers. Small and medium businesses. (2).

Crazy! 189 Answers To The Top Startup Questions On Your Mind

maplebutter.com

What is the best advice you can give for finding a business partner? Don’t quickly choose any business partner. If you’re looking for business talent – go to the business meetups. I don’t have any formal business training and I actually think it’s served me well.