You need to understand how your business works before starting it. Many entrepreneurs discover this very late.
Thinking about your project, step by step, you can set the main variables in your business, set up the relationships between them and forecast the main financial variables.
In the beginning, we use standard predictions for CAC and LTV, and when your business starts you will have more accurate numbers. We “play” with different scenarios to know what might happen.
Investment required, number of users for incoming, cost of your marketing plan, break even… and many other ratios, are determined a spreadsheet to forecast your business and manage it in the near future.
