The Startup Station Blog

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

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 explaining how to calculate such costs (which can be applied to prices...

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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 explaining how to model BTB sales as well...

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Financial Modeling Tip: How to Model Viral Effects for Users

All brands want to benefit from the multiplier effect when one user refers one or more new users. But how exactly do you model it, especially for a pre-revenue startup? Please watch our Youtube video for a detailed walk-through on how to model the user virality effect as well as (and very...

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Financial Modeling Tip: How to Model Word-of-Mouth

All brands want to benefit from the word-of-mouth effect which decreases user acquisition costs and also increases organic growth. But how exactly do you model it, especially for a pre-revenue startup? Please watch our Youtube video for a detailed walk-through on how to model the word-of-mouth...

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Financial Modeling Tip: How to Model a Podcast Marketing Strategy

Podcasts have become extremely important as a way to establish executives as thought leaders and raise brand awareness. It is another example of a marketing strategy which is modeled based on the size of the audience reached as opposed to the budget spent. Please watch our Youtube video for a...

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Financial Modeling Tip: How to Model Social Media Strategy

Modeling a go to market strategy is very challenging for pre-revenue startups because of the lack of data. And yet setting your financial goals and determining the appropriate metrics are key to understanding if your strategy is working or not when you begin executing. They are also key to making...

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Financial Modeling Tip: How to Model 1M 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 an Average Purchase Price

Many companies offer several products or services to their customers. When you don't have a lot of demand data, how do you estimate the average purchase amount any given customer would spend? You typically have two choices: Project demand for each product Project how many customers you...

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Financial Modeling Tip: How to Model Influencers Marketing Strategy

The go to market strategy is one of the weakest points in most startup pitches. Even when it's present, most founders don't model it, making any revenue projections they produce unverifiable, because their growth assumptions are disjointed from their marketing activities. One of most common...

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