| | December 20229CIOReview· What percentage of your total revenue is recurring?· How much MRR did you add last month from new customers?· How much MRR did you lose last quarter from churn?· How much MRR did you add last year from upselling existing customers?Meanwhile, a marketplace business should focus on Gross Merchandise Value (total amount of sales that pass through the platform), Gross Transaction Value (percentage made off the GMV), and one-off transaction fees (like initial set up fees). Be as clear as possible about your model before getting into how much you make.3. Decide The Appropriate Time Frame To Tell Your Growth StoryRevenue doesn't mean anything without context. It's very different to say you've had $300,000 in revenue over the life of your company, to $300,000 in monthly recurring revenue. There are two things to consider:· What interval shows my trajectory best? The answer depends on your sales cycle length and how fast your company is growing. If your sales cycle is short and you're growing quickly, put your weekly numbers on show. If you have a longer enterprise sales cycle, a monthly or quarterly interval might be more appropriate. No matter what, avoid annual numbers! They don't provide granularity, and things change far too fast in startup land for it to tell a good story.· How far back do I show?As always, it depends on the story you're telling. It might be best to show the story since you've landed on your current model since your latest pivot, or you may want to walk an investor through the entire history of your company, explaining the impact of pivots on your traction.4. Make A Simple Stacked Bar Chart To Convey Your Story.Put it in your pitch deck or email it over before your meeting. Once again, don't be afraid to show the bad parts! Companies don't live in spreadsheets: very few companies grow consistently and predictably, and everyone loses customers and makes mistakes. Show this in your story and explain your learnings along the way. The above approach will ensure investors come away with a better understanding of your company and hold your communication ability in high esteem. As an added bonus, you'll save 20 minutes in an hour meeting. Giving you extra valuable time to go deeper in other areas. Your job as a founder is to be a master storyteller and ensure the investor has all the information they need to seriously consider investing in your company
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