When you pitch to investors and ask for money, you have a specific quantitative ask for investment. Many startups fail to properly analyze and document the possible Return-on-Investment for that investor. In the absence of a certain IPO or acquisition, the nearest proxy for projected returns will be your financials and the related Key Performance Indicators (KPIs). Credibly tying your marketing, sales and operations to your financial plan and showing credible metrics are crucial to winning over skeptical investors.
Key things to do or document in Module 5 include the following:
- Define your Metric that Matters.
- Find your Scalable and Repeatable Growth Hacking tactics.
- Understand your CAC, ARPU, Churn, LTV and M2BE.
- Define your Business Model.
- Define your Innovation Stage.
- Develop and understand your Sales Funnel and related Conversion Rates.
- Not covered in the curriculum but available in the Documents Folder are a variety of financial model templates that you can use for your financial planning and modeling.
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Jeff Wallace & Kal Deutsch