David Skok writes some of the most informative and educative articles that you can find. If you are serious about tracking what matters for your saas, this is one blog post you need to print out and pin on your board.
“There are 3 key elements in running a saas business.
* Acquiring customers
* Retaining customers
* Monetizing your customers”
This piece covers growth, unit economics, core calculations about if your business is viable (hint:your LTV should be 3x your CAC and Months to recover CAC less than 12; if you can get it to 6.3months you will have a hockey stick curve for your cashflow).
You will learn about churn and how it will impact your survival and growth. Also things like why there will be a double dip while arriving at product market fit and doubling down on growth – and why lots of investors put the brake on when they should actually be encouraging the founders to accelerate.
I will not even attempt to summarise as it will defeat the purpose of the article (suggest you read the original as well). Suffice to say that this will be one of the most important piece of condensed wisdom on building your saas business you will read ever. Period.
Where I learnt this #323
SaaS Metrics 2.0 – A Guide to Measuring and Improving what Matters https://www.forentrepreneurs.com/saas-metrics-2/
SaaS Metrics – A Guide to Measuring and Improving What Matters https://www.forentrepreneurs.com/saas-metrics/