The importance of tracking CAC by volume and pulse testing.
Perfecting your unit economics to become a profitable business.
Using metrics to set you up for entrepreneurial success.
How to think strategically about spending capital.
When to use convertible debt to your advantage.
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.
While some entrepreneurs like uncapped notes, most investors hate them. But agreeing to a valuation cap can send a signal that may hurt you in your next round - it could be too high, scaring off potential investors or too low, hurting your negotiating power. Here is a way to raise this bridge with a price the investors will like without signaling any price at all!
In last week’s episode, we discussed the pros and cons of SAFE/Convertible Debt vs. Equity. This week we take a deeper dive into some unexpected problems you can run into when deciding to raise with SAFE/Convertible Debt. Make sure you are always putting yourself in the best position for your next raise, always be optimizing for the future!!