,
6 tweets,
1 min read
Read on Twitter
I really hate when early stage startups talk about CAC / LTV. In the early stage it's almost impossible to know either. What I've realized is that way too much later stage advice is being absorbed and acted upon by early stage founders.
Further proof - the number of pre-product market fit founders who ask me when is the right time to start Blitzscaling.
Many people are telling me to direct this feedback to early stage investors as well.... so consider this a note to them as well.
Early stage founders should ask themselves: Can you narrowly identify the customer who has the problem you are solving? How intense is this problem and how willing are they to pay? Does your solution actually solve the problem? Are you retaining customers?
Something @daltonc pointed out to me over slack. My tweet doesn't mean if you have a live service with cohort data you should be ignoring all of your metrics. You should know your CAC and you should measure your payback period and be trying make it as small as possible.
But you shouldn't assume you know your LTV, you shouldn't assume your CAC will stay constant, you shouldn't assume that a purchase means you are solving the customer's problem, and you should be worried if your payback period if high.
