Step Three: Cost of Acquisition vs. Profit
To get to the heart of confidence in profitability and positive projections though, a very simple comparison needs to be made: cost of acquiring a customer versus what you can make off of a customer. At least in the beginning stages of a start-up, this is more than your first milestone: this is the first gate. It can either be a sign to jump ship and start anew or change your approach. While how bad you want your product to succeed plays an important role, learning when to jump ship is a skill within itself. It’s something learned from experience, so don’t be afraid to use this comparison for continual iteration.
This is just a general overview of the exciting and not-so-perilous depths of starting new business ventures. For a deeper and even alternative look at the game, stay tuned for further content pushed out by 52businesses, and as always, thank you for reading.