Startup killer: customer acquisition cost

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Rina7RS
Posts: 477
Joined: Mon Dec 23, 2024 3:47 am

Startup killer: customer acquisition cost

Post by Rina7RS »

Among the thousands of articles advising entrepreneurs on what they must focus on to build a successful startup, there are many articles about three key factors: team, product, and market, with a particular focus on the importance of productmarket fit. Failure to get productmarket fit right is likely the number one reason startups fail. However, in all of these articles, I didn’t see any discussion of what I believe is the number two reason startups fail: the cost of acquiring customers being higher than expected and outstripping the ability to monetize those customers.

Of the three core elements of a startup, team, product, and australia mobile database market, the only one that matters is productmarket fit. However, after carefully observing hundreds of failed startups, I found that a large percentage of them solved the productmarket fit problem but still failed because they didn’t find a way to acquire customers at a low enough cost.

Business Model
I would like to propose that in addition to team, product, and market, there is actually a fourth and equally important core element of a startup, which is the need for a viable business model. In most startups, the viability of the business model will come down to balancing two variables:

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