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Is your business viable?

Lesson 3

Is your business viable?

Understand how to check the unit economics and viability of your case by adding all revenue related cost

  • Add Cost-of-Goods-Sold
  • Add Customer Acquisition Cost (Cost-of-Selling + Cost-of-Marketing)
  • Check Customer Lifetime Metrics and Viability
  • Check Customer and Sales Team Economics

Cost of Goods Sold

eCourse3-1_Lean-Case_Cost of Goods Sold

Add cost required to keep your business runnining

  • Customer Onboarding Cost
  • Customer Support Cost
  • Production Cost
  • Hosting
  • ...

Customer Acquitision Cost

eCourse3-2_Lean-Case_Cost if Marketing

Add Cost-of-Selling - direct, headcount related cost to acquire and renew customers

  • Sales Team Cost
  • Sales Partner Commissions
  • ...

Add Cost-of-Marketing to ensure enough leads are generated

  • Cost-per-Lead required
  • Pipeline Conversion

Customer Lifetime and Viability Metrics

eCourse3-3_Lean-Case_Lifetime Metrics

Understand the unit economics

  • Churn
  • Customer Lifetime
  • Customer Acquisition Cost
  • Customer Lifetime Value
  • LTV/CAC Ratio
  • Months-to-recover CAC

Customer and Sales Team Economics

eCourse3-4_Lean-Case_Unit Economics

Learn about the Unit Economics of a Customer s, Sales Teams, ..

  • Profitability and Cash-Flow View
  • Average Revenue and Net Profit
  • Maximum Loss
  • Time-to-break-even
  • Investment required
  • Time-to-get-investment back
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