Why Cash is King!
One of the first things I often discuss with my SaaS founders are the pros and cons of monthly vs. annual subscription plans. This choice is always a trade-off between short term revenue growth vs. receiving more cash on day 1.
So, what’s the best choice? More here...
https://www.yannickoswald.com/post/why-cash-is-king
Great is 80% annual plans, good is 50-60%
In the first two years, you would like to grow 300-500% yoy for B2B (starting basis 50k-500k), 500%-1000% for B2C (starting basis 20k-50k)
Regarding product development, the best consumer teams I have come across ship and test one or multiple new versions per week, and at least one feature a month in the first 2 years
I never look at LTV as it doesn’t make much sense in the early days... I only look at engagement, especially after month 6 for annual plans to predict churn in month 13 (as I mostly invest in the company before that).
More in this post https://www.yannickoswald.com/post/why-are-investors-obsessed-with-churn
Hope this helps. Please feel free to DM me for any further questions. Thanks!
The most ambiguous term in startup land...
A couple of weeks ago, I caught myself in a meeting using the wrong definition of ARR. I realized that most people in startups aren’t that familiar with the correct definitions of ARR, MRR, collections, and bookings.
These terms can be so misleading... Let's review them.
👉 https://www.yannickoswald.com/post/the-most-ambiguous-term-in-startup-land
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