Up and Running

JANUARY 24, 2014

Outline your business model. Your business model tells an investor how your idea will (or does) convert into being economically viable. The best way to show you how to communicate your business model is to show you an example of a good one. Your business model should answer the questions: What do you sell?

Sweat Equity 138

Sweat Equity Churn Rate Forecast Business Model 138

Startup Lessons Learned

MARCH 21, 2013

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% Mark MacLeod, Chief Corporate Development Officer at Freshbooks, says that you need to get below a 5% monthly churn rate before you know you’ve got a business that’s ready to scale.

Analytics 167

Analytics Lean Metrics Churn Rate 167

Hearpreneur

OCTOBER 20, 2019

Often entrepreneurs and business owners create their daily, weekly, quartely or yearly goals around their business. It could be more revenue, hiring clients or launching a new product or service, where setting goals presents a fresh opportunity to achieve different objectives. 4- Reduce churn rate by half.

Papua New Guinea 66

Papua New Guinea Hawaii Advisory Board Churn Rate 66

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Michael Kassing.

Software Review 48

Software Review North America Europe Metrics 48

Up and Running

MAY 1, 2014

If your business model (i.e., “how If you are raising money to start or grow your business, you need to include the details of what you need in the executive summary. Be sure to provide a review of how the business is owned as well. Does each business partner own an equal portion of the business?

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Up and Running

MARCH 11, 2015

It’s to highlight some of the key parts of your opportunity and what makes it so amazing that whoever it is that you’re talking to, whether it’s a bank, or an investor, or a family member, or a potential business partner, that they are on the edge of their seat and they ask for your full plan, and they want to know more.

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

maplebutter.com

JANUARY 8, 2013

What is the best advice you can give for finding a business partner? Don’t quickly choose any business partner. I would focus on one product and set a goal to generate $1M in yearly revenue from it. I don’t have any formal business training and I actually think it’s served me well. Do something together.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

andrewchenblog.com

JANUARY 28, 2010

To become profitable using a freemium business model, this simple equation must hold true: Lifetime value > Cost per acquisition + Cost of service (paying & free) Said in plain english, the lifetime value of your paying customers needs to be greater than the cost it took to acquire them, plus, the cost servicing all users (free or paying).

CPA 51

CPA Retention Viral Acquisition 51

ConversionXL

OCTOBER 30, 2019

The Pareto Principle states that you get 80% of your revenue from 20% of your customers. At this stage, a HubSpot customer might have hired a HubSpot partner to boost their marketing. During the referral stage, customers have become advocates for your company and/or product, actively referring new business to you. Reactivation.

Retention 101

Retention Metrics Churn Rate Acquisition 101

ConversionXL

OCTOBER 30, 2019

The Pareto Principle states that you get 80% of your revenue from 20% of your customers. At this stage, a HubSpot customer might have hired a HubSpot partner to boost their marketing. During the referral stage, customers have become advocates for your company and/or product, actively referring new business to you. Reactivation.

Retention 48

Retention Metrics Churn Rate Acquisition 48

ConversionXL

MARCH 5, 2014

It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model. At least you’ll have something to benchmark so you can reduce your churn rate later. 20 x 12 months x 3 years = $720 in total revenue (or $240/year). have multiples that are more like 5 x CAC.).

Customer 133

Customer Churn Rate Retention Acquisition 133