startups Archives - Starter Inc.

Startups: These 3 Key Questions Will Boost Your Profits

Posted by | business, management, startups, strategy | One Comment

In terms of what you can plan for, revenue depends largely upon how well your product fits its market opportunity, how well received it is by customers, and the value that product delivers in the space. Once a company achieves relatively good fit, then it becomes possible to focus on improving margins and revenue, scaling the business, etc.

The KPI that is impacted most immediately by poor product/market fit and positioning is the CAC (Customer Acquisition Cost) — poor product acceptance means you need to resort to stuffing your product down your (probably few) customers’ throats, typically through hardball salesmanship and misleading ads — not cool!

The key takeaway is that no amount of sales and marketing spend cannot overcome a bad product.

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