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Lessons Learned: The three drivers of growth for your business.

Startup Lessons Learned

The spread between your LTV and blended CPA determines either your profitability or your rate of growth, and a high valuation depends on balancing these two factors. To the extent that you have good word-of-mouth, activation or retention, these factors tend to drive down your CPA or drive up your LTV, and so are nice bonuses.

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It's a startup, not a spreadsheet

Startup Lessons Learned

Luckily, we also discovered that certain other metrics, like LTV and CPA were much better than we initially projected. This model of joint accountability is at the heart of the lean startup, and is just as applicable to venture-backed, bootstrapped, and enterprise startups. The Lean Startup Intensive is tomorrow at Web 2.0.

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Business ecology and the four customer currencies

Startup Lessons Learned

A business that strives for something like this should absolutely be charging money from day one, in order to establish baselines for their two key metrics: CPA (the cost to acquire a new customer) and LTV (the lifetime value of each acquired customer). These concepts have important implications for any lean startup. Expo SF (May.

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