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The 3 Key Metrics Every Early-Stage Startup Should Track

  • CAC (Customer Acquisition Cost) is calculated by dividing the total marketing and sales expenses by the number of new customers acquired.
  • The goal is to have a low CAC without compromising lead quality or customer satisfaction.
  • LTV (Customer Lifetime Value) is calculated by multiplying the average revenue per customer by the customer lifetime.
  • Aim for a good LTV to CAC ratio of 3:1 to ensure a sustainable business model.
  • MRR (Monthly Recurring Revenue) is calculated by multiplying the number of customers by the average revenue per user.
  • Early-stage startups should focus on steady month-over-month MRR growth as an indication of business model traction.

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