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The only 2 ways to build a $100 million business

Version One Ventures

The biggest driver for high LTV is repeat purchase behavior (in an e-commerce business) respectively a low churn rate (in a SaaS company). As the consumer Internet space becomes more and more crowded, every startup founder needs to be thinking about these two ways to scale a business.

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One of the Biggest Mistakes Enterprise Startups Make

Both Sides of the Table

The era of VCs investing in successful consumer Internet startups such as eBay led to a belief system that seemed to permeate many enterprise software startups that hiring sales or implementation people was a bad thing. The more your product is integrated with other systems the lower your churn rate will be. And the other thing.

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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). That bit is easy.

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Lies that Losers Tell

Ben's Blog

We have a very high churn rate, but as soon as we turn on email marketing to our user base, people will come back” – Yes, of course. Back at the tail end of the Great Internet Bubble in 2001, as all the big technology companies began missing their quarters by giant amounts, I found myself wondering how none of them saw it coming.

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Profit and Loss Responsibility

SVPG

More often, we have multiple product managers and their product teams working on different components of a larger shared service (think SaaS companies or major consumer internet services) or apps or devices. Of course, in the technology world, it is rarely this model.

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How To Be Successful In The New Customer Experience Battlefield

YoungUpstarts

Companies that actively focus on CX can significantly reduce churn rates, increase retention rates, and earn higher revenues. According to HubSpot , prior to the internet “service didn’t matter too much because contracts, for software companies as well as professional services, acted as ‘lock-ins’ on customer loyalty”.

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This Is Why You Should Start A Subscription Box Business

YoungUpstarts

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.