Founder machine week 7
- 1. Founder Machine Week 7 phil@flashissue.com @philhill
- 2. Networking Your Business Metrics 1 2 4 3 Metric Exercises phil@flashissue.com @philhill
- 3. Tip for the day phil@flashissue.com @philhill
- 4. Metrics What are metrics? Why are they important? How to use them? How many should i have? phil@flashissue.com @philhill
- 5. 4 Metrics Not To Ignore • Cost to Acquire Customers (CAC) • Churn Rate • Lifetime Value of a Customer (LTV) • Revenue Percentages http://www.inc.com/jeff-haden/4-business-metrics-you-cant-afford-to-ignore.html phil@flashissue.com @philhill
- 6. Cost of Customer Acquisition (CAC) • Cost of marketing & sales / # customers over period • Rising CAC = cut M&S phil@flashissue.com @philhill
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- 8. Churn Rate • How you retain customers (rate of loss) • Product or company dissatisfaction phil@flashissue.com @philhill
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- 10. Life Time Value (LTV) • Average spend of customer before you lose them • Rule 78 • > LTV then > CAC you can afford • MRR / Churn per month = LTV phil@flashissue.com @philhill
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- 12. Revenue Percentages • Signals changing customer habits or market • Wedding 80% initial package; 10% additional sales; 10% sales to f & f (photos) phil@flashissue.com @philhill
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- 14. Some More • Back of envelope techniques • Pirate Metrics • http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version • Profit & Loss • http://www.handsonbanking.org/biz/?p=212 • How Raising Money Works (investors) • http://www.khanacademy.org/finance-economics/venture-capital-and-capital-markets/v/raising-money-for-a-startup phil@flashissue.com @philhill
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- 17. Networking Your Business Metrics 1 2 4 3 Metric Exercises phil@flashissue.com @philhill