The Startup Station Blog

Finance & Strategy | Early-Stage Startups | Company Valuation | Financial Modeling

Financial Modeling Tip: How to Model 3M Subscriptions with 1M Free Trial

The subscription model is extremely popular these days because it implies recurring revenues and more cash flow predictability. It also often has a freemium component to allow users or customers to try a product at first for free. However, it is not always straightforward how to model it...

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Financial Modeling Tip: How to Calculate Average Recurring Revenue - 3M SAAS

Average recurring revenue is one of the key metrics for every subscription/SaaS business. If you are not sure how to calculate, read on! Please watch our Youtube video for a detailed walk-through how to calculate average recurring revenue for a SaaS business with one-month subscriptions and a...

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Financial Modeling Tip: How to Calculate Customer Lifetime Value

Customer lifetime value (CLV) is one of the key metrics for a subscription / SaaS business. It tells you how much money you make per customer overall, or how valuable each customer is to your business. Please watch our Youtube video for a detailed walk-through how to calculate customer lifetime...

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Financial Modeling Tip: How to Model One-Time Fees for SaaS Business

Even when you have a SaaS business, some of your revenues may not be recurring. For example, if you have maintenance fees or on-boarding fees, such fees will only occur sometimes. How do you then model them? Please watch our Youtube video for a detailed walk-through how to model one-time fees...

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Financial Modeling Tip: How to Perform Contribution Analysis

Contribution analysis is a very important part of any financial analysis. It tells you which revenue streams are more/less important when it comes to volume, level of sales, profitability, growth, and other metrics. Please watch our Youtube video for a detailed walk-through how to perform...

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Financial Modeling Tip: How to Calculate Average Recurring Revenue

Average recurring revenue is one of the key metrics for every subscription/SaaS business. If you are not sure how to calculate, read on! Please watch our Youtube video for a detailed walk-through how to calculate average recurring revenue for a SaaS business with one-month subscriptions and a...

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Financial Modeling Tip: How to Model Selling Services on a Platform

If your startup makes money by selling services on your platform (perhaps a marketplace), you've come to the right place. Please watch our Youtube video for a detailed walk-through how to model sales, even if you are pre-revenue, as well as how to formulate assumptions. Want to learn more? Sign...

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Financial Modeling Tip: How to Calculate Cost by Usage Tiers

Some costs vary by volume or usage. Example: AWS costs or manufacturing costs. Also sometimes you set your prices by the company size, or the number of employees. Please watch our Youtube video for a detailed walk-through how to calculate such costs (which can be applied to prices too) as well...

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Financial Modeling Tip: How to Calculate a Customer Acquisition Cost

"What is your customer acquisition cost" is the most frequent question asked by investors to startups. And a very difficult one to answer, especially if you are pre-revenue and have not yet acquired any customers. Please watch our Youtube video and find out how you can credibly estimate this...

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Financial Modeling Tip: How to Model BTB Sales Force

If you are selling through partnerships or to enterprises, you are mostly likely using salespeople to generate revenue. Do you know how to estimate those sales, especially if you are pre-revenue? Please watch our Youtube video for a detailed walk-through how to model BTB sales as well as (and...

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