This week Troy walks you through an experience he had during a product launch with a CTO. Most CTO’s he has worked with in the past tend to insist the product they are putting out is perfect and get defensive when you tell them otherwise, but this CTO did something totally unexpected. Always make sure you are giving people permission to tell you the truth. Don’t ask people “what do you think of my product” as very few will be comfortable telling you the truth. Use the hack to get them to tell you why your baby is ugly!
We’ve talked a lot about the different ways to structure your fundraise. Today, we are talking about a critical tool you need in place when starting your company, the founder agreement. Some may think it’s simple, just split the ownership equally between the founders. But what happens when a founder leaves the company? Are they still entitled to the same return as the founder that has continued to work to bring the company to success? Watch today’s video hear more about what you should consider in your founder agreement.
Last time Troy talked about LTV/CAC ratio and the importance of tracking by channel. This week, Troy is continuing the conversation and talking about the importance of tracking CAC by volume and pulse testing. Learn how investors will interpret your answer to the question “What is your CAC?” and then you can look like a rock star with the right answer!
If you’ve ever met with Troy, he has probably asked you countless questions about your CAC (Customer Acquisition Cost). The reason is, if you know your CAC and your LTV, then you know the unit economics of your customer. If your unit economics are profitable, you can repeat that many times to become a profitable business. Watch today’s video to hear a real example about one of our portfolio companies.
To be an entrepreneur you have to be tenacious, coachable, comfortable with risk, and have a penchant for problem solving. Those are “table stakes” that will help make you a good entrepreneur. To be a GREAT entrepreneur you need to be intellectually honest with yourself. Do away with the vanity metrics, and set up metrics that will keep you honest in how your business is doing.
When entrepreneurs pitch us we hear about how much they are raising, how long they think it is going to last them, and what they are going to spend it on. As an entrepreneur, you need to think strategically about how to spend your money. Some investments may pay back and produce value immediately while some take a while longer, thus leaving you with a shorter runway. It’s all in the numbers!
When deciding how to price a product, many entrepreneurs have flawed assumptions. I hear them assume that a discounted price on their product or service will bring them more customers, when in fact it can be just the opposite. Watch the video to hear Troy’s experience with this exact scenario at SurePayroll.