?? Tuesday's Cash-Flow Clarity: Are You Burning Cash on Inefficient Marketing? ??

Dive deeper into why startups hemorrhage cash, and you'll likely point your finger at one major leak: inefficient marketing expenses.?

Too many first-time founders blindly throw money at marketing without analyzing the returns. They fail to track their spending across different channels or grasp the basic unit economics—how much they actually earn from each new customer.

This lack of understanding triggers a dangerous downward spiral. If you don’t know what each customer is truly worth, how can you decide what you should spend to acquire them? Is $20 reasonable, or could $500 still make sense?

Here’s how to stop the bleed:

1. Track Customer Lifetime Value (CLTV):
2. Factor in Customer Service Costs:
3. Set Customer Acquisition Cost (CAC) Limit:

Key Takeaways:

• Track how much you earn from each customer and how much it costs to acquire and serve them.
• Don't spend more on acquiring a customer than the profit they generate over time.
• Prioritize efficient marketing that brings in customers at a reasonable cost.

Stop the guesswork. Start with the numbers.