STEP 17

CALCULATE THE LTV OF AN ACQUIRED CUSTOMER

LTV along the cost of customer acquisition, will help us determine how
profitable our business will be in the beachhead market.

The LTV by itself will not tell us how attractive our business is, for this ,we will
also need to calculate COCA
STEP 18
MAP THE SALES PROCESS TO ACQUIRE A
CUSTOMER
How to map our sales process?
 How does our taget customer become aware that they have a problem
or an opportunity?
 How will thay learn that there is a solution to this problem they have?
 How do we make the sake?
 How do we collect the money?
STEP 19
CALCULATE THE COST OF CUSTOMER ACQUISITION

Determine how much it costs to acquire a customer over the short-term,

medium-term and long-term based on our sales process

How to calculate COCA

COCA= TMSE – IBSE / NC

STEP 20
IDENTIFY KEY ASSUMPTIONS
 Will determine which assumptions about our business have not been
thoroughly tested
 Will rank our top 5 to 10 assumptions
in order of importance
STEP 21
TEST KEY ASSUMPTIONS
Will take our list of key assumptions and design empirical tests to validate or
refute them
Perform the empirical tests, moving quickly and efficiently to decrease the
risk of our startup.
STEP 22
DEFINE THE MINIMUM VIABLE BUSINESS PRODUCT
3 condition of a MVBP
 The customer gets value out of use of the product
 The customer pays for the product
 The product is sufficient to start the customer feedback loop, where the
customer can help you iterate toward an increasingly better product.
STEP 23
SHOW THAT “THE DOGS WILL EAT THE DOG FOOD”
 Demonstrate quantitatively that customers will pay for our MVBP
STEP 24
DEVELOP A PRODUCT PLAN

 Go beyond the MVBP to determine which features we will build out for
the beachhead market
 Determine which adjacent markets we will sell to after dominating the
beachhead market.