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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

In general I find that raising large amounts of money when you haven’t figured it out ends up papering over problems more then helping solve fundamental issues in the business. So if you paid $100 for a customer who converted via a Facebook ad or Google search ad (SEM) that is not your CAC.

Metrics 150
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How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

Yet I can’t help thinking there are many predictable failures that come from a lack of basic planning. It says that selling an airplane ticket for $500 and getting paid a $5 fees by the airlines (1% gross margin) is not the same thing as selling $500 of software that you built (>90% gross margin).

Startup 150
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Pour And Stir II – Managing Your Cost Per Customer

InfoChachkie

Unpaid Search – Never pay a consultant to help you achieve a higher search ranking. However, Search Engine Management (SEM) is not a “set and forget” exercise. You must apply dedicated resources to your SEM efforts, either in-house or via a trusted third-party partner, in order to maximize customers acquired from this channel.

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