Challenges of managing the finances of a growth stage company
The second challenge is forecasting revenue. When a company is experimenting with different channels and developing new products, predicting success in terms of revenue – both in timing and magnitude – is extremely challenging. We have exciting products in the works that we believe will enlighten and transform the physician’s office. However, predicting “how soon” and “how much” are difficult.
The final challenge (but certainly not the last) is finding the metrics that help you manage the business through the growth stage of company. I believe the most important metric to focus on in any growing SaaS (software as a service) company is customer acquisition cost. Throughout any phase of a company, if the cost of acquiring a customer (e.g., sales compensation, marketing costs, etc.) is not significantly less than the long-term value of that customer, then changes need to be made. Making that determination is very important and something that I’m always focused on.
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Joel Wood – CFO