If your customer acquisition cost exceeds lifetime value at small scale, scaling just burns money faster. Calculate CAC (total marketing spend / new customers) and LTV (average revenue per customer × average customer lifespan) monthly. If LTV/CAC is below 3:1, fix the ratio before increasing ad spend. The most common startup death: scaling a broken unit economics model with venture capital.
Sign in to join the conversation.
This insight is user-generated content for informational purposes only. It is not professional advice. Always consult a licensed professional before acting on information related to trades, health, finance, or any field where incorrect application could cause harm. KnowBoar assumes no liability for actions taken based on this content. Full terms.