DecaMillionaire Decoded Grow to a $10m Business: The 4 Metrics to Track
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Jun 11, 2024 Discover the four essential metrics every business owner needs to track for growth. Explore the significance of Net Promoter Score and Customer Acquisition Cost in boosting customer satisfaction and profitability. Dive into the importance of operational cash flow and EBITDA for financial health and strategic decisions. Gain actionable insights backed by over 30 years of experience, and get inspired to scale your venture to a $10 million valuation. This practical advice aims to empower your entrepreneurial journey!
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Four Key Metrics for Business Success
- Track these four key metrics to build a successful $10 million company.
- These metrics offer actionable insights for business growth and scaling.
Calculating Net Promoter Score
- Calculate your Net Promoter Score (NPS) by surveying customers about their likelihood of recommending your business.
- Subtract the percentage of detractors (scores below 6) from promoters (scores 9-10).
Calculating Customer Acquisition Cost
- Determine your Customer Acquisition Cost (CAC) by dividing total marketing and sales expenses by the number of new customers.
- A low CAC indicates an efficient business.