Margins and burn rate are key metrics important for every startup. Margins indicate how efficiently you run your business and how susceptible it is to revenue volatility. The burn rate is typically used to describe the rate at which a new company is spending its venture capital to finance...

READ MORE

Nowadays, it's very common to outsource customer service costs to a third-party provider, such as Zen Desk. Please watch our Youtube video for a detailed walk-through on how to estimate those costs as well as (and very importantly) how to formulate assumptions. Want to learn more? Sign up for...

READ MORE

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...

READ MORE

If you are selling through partnerships or to enterprises, you are mostly likely using salespeople to generate revenue. Do you know how to calculate your sales budget when it comes to salaries and especially commissions, especially if you are pre-revenue? Please watch our Youtube video for a...

READ MORE

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 explaining how to calculate average recurring revenue for a SaaS business with one-month...

READ MORE

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 explaining how to calculate...

READ MORE

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 explaining how to model...

READ MORE

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 explaining how to...

READ MORE

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 explaining how to calculate average recurring revenue for a SaaS business with one-month...

READ MORE

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 explaining how to model sales, even if you are pre-revenue, as well as how to formulate assumptions. Want to learn...

READ MORE