Seeing Both Sides

OCTOBER 24, 2015

Since I see a few common patterns of mistakes, I thought I'd add to the LTV literature and point out the top three reasons many investors roll their eyes when they see entrepreneurs present inflated, poorly constructed LTVs: 1) Your churn rate is understated. A monthly churn rate of 1%?

Churn Rate 20

Churn Rate Early Stage Revenue Metrics 20

YoungUpstarts

AUGUST 24, 2017

More importantly, a subscription business model enables you to manage the cash flow, upgrade your business planning and optimize metrics such as churn rates, the lifetime value of a customer, expansion, and more. It is a bootstrappable model. In most cases, urgency and overwhelm can create a lot of stress.

Churn Rate 149

Churn Rate eCommerce Business Model Bootstrapping 149

Lightspeed Venture Partners

NOVEMBER 19, 2012

With a 15% churn rate, that suggests about $7 in lifetime value. This business can’t work. They had three stages to their plan. The first was to franchise their model, selling a captain a $35,000 boat and a business plan to replicate Corks Away for $175,000. Adding these up gives $15/mth.

Pre-Money Valuation 166

Pre-Money Valuation Alabama Valuation Churn Rate 166

Up and Running

APRIL 27, 2012

Who needs a business plan when there is work to be done?” Business planning entails goal setting and milestones, managing cash flow and prioritizing work streams. No business plan ” does not mean no planning. They need to re-embrace planning even if they have no desire for a business plan.

Metrics 68

Metrics Nigeria Ratchet Churn Rate 68

Up and Running

AUGUST 21, 2014

Lifetime value will also get there and you increase your lifetime value by decreasing your churn rate, i.e. the rate at which people churn out of your product or service, but decreasing your churn will take months to catch up and show the bottom line and your absolutely want to decrease your churn.

Metrics 84

Metrics Startup Churn Rate Forecast 84

David Teten

DECEMBER 3, 2019

Lean Case provides standard business models & metrics, so you can apply a standard approach to business planning, modeling, and profitability tracking. Most of this data is sourced directly from the business through service providers such as QuickBooks , Xero , MX , Shopify , Stripe , Google Analytics , and Crunchbase.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

YoungUpstarts

JUNE 3, 2016

Calculating your loan-to-value ratio (LTV) requires clear data, including revenue collected from a customer in a given period, profit margin, churn rate, and retention costs. Incorporating these measurements isn’t easy, but much like building a house, proper planning and careful construction can make the process a lot easier.

Metrics 100

Metrics Churn Rate New York City Marketing 100

Up and Running

JUNE 21, 2017

For SaaS businesses, this is calculated quite easily using the monthly churn percentage (LTV = ARPU-Average Revenue per User/Average Monthly Churn Rate). Tracking lifetime value on other types of businesses is harder. How to Calculate Social Media Marketing ROI for Your Small Business.

Marketing 98

Marketing Analytics Campaign Metrics 98

Up and Running

MARCH 11, 2015

She is regularly invited to participate as a judge for business plan competitions, as well as speak on topics including entrepreneurship, angel investing, social media, and authentic self promotion. Needless to say, the webinar was absolutely packed with great tips on what it takes to pitch your business so that investors take notice.

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

maplebutter.com

JANUARY 8, 2013

No investor cares about a business plan. If you’re not into business plans, as an investor, how would you decide if a startup is worth investing in (if you do in fact invest in startups)? . How can I lower my apps churn rate? Your existing customers are you best source of referals – just ask.

Technical Review 44

Technical Review Startup Cofounder Software Review 44