So your customer pays $1 today, when will he pay $5 in your proposed lifecycle?
The smartest entrepreneurs in the world know the answer to the question above. They know it not in theory. They know it not by creating jazzy excel sheets and business models.
The smartest founders know revenue maximisation from their customers because they have gone through several important cycles of ‘knowing the customer’ and ‘what top value is he/ she paying for?’
What does ‘know your customer’ actually mean?
One of the most important elements of knowing your customer meaningfully enough is to understand if he/ she is truly your customer? An important sub-element is to understand how will this customer fit into your revenue maximisation goals as you create more value over the lifecycle?
Revenue maximisation happens with revenue, not on excel sheets
Our investor relations advisors work with entrepreneurs to help them build trusted investor relationships. The one important step in the journey is to prepare fact sheets that do not have random percentages and assumptions. A strong fact sheet gives a deep view of the founders maturity especially in understanding the customer and the proposed revenue hence.
The founder’s depth of understanding the customer lifecycle and the customer will always lead to building a successful business that is trusted by investors, employees and other stakeholders.