Slides from Week 7 of Founder Machine startup accelerator

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

7. phil@flashissue.com @philhill

8. Churn Rate
• How you retain customers (rate of loss)
• Product or company dissatisfaction
phil@flashissue.com @philhill

9. phil@flashissue.com @philhill

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

11. phil@flashissue.com @philhill

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

13. phil@flashissue.com @philhill

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

15. phil@flashissue.com @philhill

16. phil@flashissue.com @philhill

17. Networking
Your Business Metrics
1
2
4
3 Metric Exercises
phil@flashissue.com @philhill