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Tropical MBA: Entrepreneurship & Founder Lifestyle cover image

#772 “When is my LTV good enough?” + Founder Mode for Bootstrappers

Tropical MBA: Entrepreneurship & Founder Lifestyle

NOTE

Maximize Growth through Professional Sales

Relying solely on personal sales and marketing efforts limits scalability within an organization. Hiring professional salespeople is crucial for expansion. Understanding financial ratios, like the Lifetime Value (LTV) to Customer Acquisition Cost (CAC) ratio, effectively informs growth strategies. For example, evaluating compensation against productivity reveals that revenue generation costs can significantly impact profitability. Calculating LTV helps assess long-term customer contributions, clarifying the necessity for investments that enhance sales capacity and foster sustainable growth.

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