Questions to ask so to evaluate a company

Life time value – ltv – of a client – how much the company makes from a client over the time that client stays with them. For example the client stays on average with the company 5 years.


Cac – cost of acquisition of a client – cost to attract a client (sales, advertising, marketing).


Burn rate – how much spending each month.


Cost to implement – how much money (and time) to get the client live with the service so the company can start charging revenue.


Cost to maintain client – how much company is spending each month to keep the client (operations, account management, technical support).


Net cash – profit.


Customer churn / turnover – how many clients leave each year versus how many new clients are contracted.


Employee churn / turnover – how many employees leave versus how many are hired each year.


Employee tenure – average – how long do employees stay in the company

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