Posts on finance, economics and startups. CEO @FinanceWithin, full service finance and accounting for eCommerce and CPG brands.
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Nov 19, 2020 • 12 tweets • 2 min read
(1/12) DTC micro-brands functionally go through 4 key revenue milestones/stages.
1) $0-1m 2) $1-5m 3) $5-25m 4) $25m-x
High level notes 👇
2/ $0-1m stage
This stage is toughest. It’s riddled w/ product challenges, inventory constraints, creative, etc.
Founders work tirelessly to achieve product-market fit.
VC-backed cos are managing expectations consistently.
Bootstrapped owners are fighting their own battles.
Sep 12, 2019 • 13 tweets • 3 min read
(1/13) A strong marketing team is built to rotate the flywheel of growth. Great DTC marketing teams:
- Have 3 core focuses: demand gen - acquisition - retention
- Avoid “Head of” titles
- Outsource certain components & maintain control of core competencies
Thoughts below... 👇
(2/13) Three focuses.
Depending on stage of co, a strong team will have demand gen - acq - retention as 3 separate focuses but ensure there’s strong XFN and cross-pollination.
Building a clean org chart from the start will help drive efficient scale.
Jul 21, 2019 • 14 tweets • 3 min read
(1/14)After observing $250M+ in ad spend on @facebook, I’ve noticed that DTC brands that scale very quickly have a few things in common:
- High margins & high AOV
- Business model is focused on retention
- Cross-border activation is simple
- Product is a consumable & impulse buy
(2/14) Metrics observed: 1) 70%+ GMs (varies across sectors. Beauty: 80% while food/bev: 30-40%) 2) $100+ AOV (non subscription) 3) Retention (subscription): 1M is 85%+, 6M is 50%+ 4) LTV/CAC: 4X+ (plz identify your payback period (PB). Marketers love LTV but rarely discuss PB)
