(from Nebucom.be, by Nick Boucart & Nebucom team)
Running a SaaS business is a numbers game. Small changes in key figures like Churn or Customer Acquisition Costs (CAC) can have a serious impact on your cash flow. And while we are at it, hockey stick growth requires deep pockets of cash. In this post, we'll run you through some simulations to illustrate how.
Often times, you'll read about how SaaS companies are able to grow fast and furious. Hockey stick growth anyone? What is less known, is that, in order to grow so aggressively, SaaS companies need to dig a deep hole first. Recovery, and the proverbial hockey stick, comes months, often times years later. Check out The Pay Later Cash Flow model for more details.
A few metrics that matter
Read more at http://www.nebucom.be/blog/2014/07/07/inconvenient-truth-saas-hockeystick-growth/