This document discusses the importance of metrics for businesses. It provides examples of key metrics to track, including cost to acquire customers, churn rate, lifetime value of customers, and revenue percentages. It also discusses how to calculate these metrics and how they can be used to measure business performance over time. Additional resources on metrics and techniques for startups are referenced.

1. Founder Machine
Week 7
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2. Networking
Your Business Metrics
1
2
4
3 Metric Exercises
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3. Tip for the day
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4. Metrics
What are metrics?
Why are they important?
How to use them?
How many should i have?
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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
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6. Cost of Customer Acquisition (CAC)
• Cost of marketing & sales / # customers over period
• Rising CAC = cut M&S
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8. Churn Rate
• How you retain customers (rate of loss)
• Product or company dissatisfaction
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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
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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)
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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