Business + productivity

how long does…(1 answers)

• How long does it take to launch a product?

  MVP product launches take 6-12 weeks for solo founders; 12-26 weeks for funded teams. The "0 to first 10 paying customers" benchmark — not "…

what ratio of…(4 answers)

• What ratio of CAC to LTV is healthy?

  The canonical SaaS health benchmark is 1:3 (David Skok, Bessemer). Below 1:1 = burning money. 1:2 = marginal. 1:3 = healthy. 1:4-1:5 = stron…

• What ratio of R&D spending to revenue is normal?

  R&D-to-revenue ratio varies by sector. SaaS typical: 25-50% in growth stage, dropping to 15-25% at maturity. Pharmaceuticals: 15-20%. Hardwa…

• What ratio of sales to marketing spend should you target?

  The Magic Number — net new ARR added / total Sales+Marketing spend — measures growth efficiency. Healthy Magic Number is 0.75-1.0+ (1× means…

• What ratio of customers churn for healthy SaaS?

  Healthy B2B SaaS: 5-7% annual logo churn / 0.5-1% monthly. Best-in-class: <5% annual. Consumer SaaS: 30-60% annual churn is normal (lower-st…

what is…(24 answers)

• What is value-based pricing?

  Value-based pricing sets the price according to the value a product creates for the customer — what they are willing to pay — rather than it…

• What is price anchoring?

  Price anchoring is a cognitive bias where the first price you see (the anchor) shapes how you judge every later price. A high "list" price b…

• What is the decoy effect?

  The decoy effect (asymmetric dominance) is when adding a third, deliberately inferior option makes one of the original two look more attract…

• What is the Eisenhower Matrix?

  The Eisenhower Matrix is a 2×2 grid that sorts tasks by urgency and importance into four quadrants — Do (urgent + important), Schedule (impo…

• What is time blocking?

  Time blocking is scheduling your day into dedicated blocks, each assigned to a specific task or type of work, instead of working from an ope…

• What is the Pareto principle (80/20 rule)?

  The Pareto principle — the 80/20 rule — observes that roughly 80% of results come from about 20% of causes. Named after economist Vilfredo P…

• What is a sales-qualified lead (SQL)?

  A sales-qualified lead (SQL) is a prospect that marketing has vetted and sales has accepted as worth pursuing — one who has shown enough fit…

• What is a sales pipeline?

  A sales pipeline is the stage-by-stage view of every open deal — from first contact through to close. It shows where each opportunity sits,…

• What is sales velocity?

  Sales velocity measures how fast revenue moves through your pipeline. The formula: (number of opportunities × win rate × average deal value)…

• What is gross margin?

  Gross margin is revenue minus cost of goods sold (COGS), expressed as a percentage of revenue. It measures how much of each sales dollar sur…

• What is burn rate?

  Burn rate is how fast a company spends cash, usually measured per month. Gross burn is total monthly cash out; net burn is cash out minus ca…

• What is runway?

  Runway is how many months a company can keep operating before it runs out of cash: current cash ÷ net monthly burn. The common post-raise ta…

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how to convert…(2 answers)

• How do you convert website visitors to customers?

  Median e-commerce conversion: 2-3%. Median B2B SaaS landing-to-trial: 3-5%. Trial-to-paid: 15-25%. Compound funnel: visitor→trial→paid = 0.5…

• How do you convert leads to customers?

  B2B lead-to-customer conversion: 5-15% median (best-in-class 20-30%). The funnel: lead → MQL (marketing-qualified) → SQL (sales-qualified) →…

what is the difference between…(7 answers)

• What is the difference between churn rate and retention rate?

  Churn rate is the percentage of customers or revenue LOST in a period; retention rate is the percentage KEPT. For simple logo counts they ar…

• What is the difference between CAC and CPA?

  CAC (Customer Acquisition Cost) is total sales and marketing spend divided by new PAYING CUSTOMERS, across all channels, fully loaded with s…

• What is the difference between NPS and CSAT?

  NPS (Net Promoter Score) measures long-term loyalty by asking how likely you are to recommend a company (0-10 scale, reported −100 to +100).…

• What is the difference between gross margin and net margin?

  Gross margin is profit after only direct costs (COGS), as a percentage of revenue. Net margin is profit after ALL costs — COGS plus operatin…

• What is the difference between CAC and LTV?

  CAC (Customer Acquisition Cost) is what you SPEND to get one customer. LTV (Lifetime Value) is what that customer is WORTH to you over time.…

• What is the difference between MRR and ARR?

  MRR (Monthly Recurring Revenue) is the monthly value of active subscriptions. ARR (Annual Recurring Revenue) is MRR × 12 — the annualized ru…

• What is the difference between burn rate and runway?

  Burn rate is how fast you SPEND money (cash out, $/month). Runway is how long you SURVIVE on current cash (months until $0). Burn × runway =…