Today, there are hundreds of words that people throw around in the context of their startups. Many, like traction, are completely meaningless. Tweet This Quote
It feels like some people are trying to fake it without really knowing what they are saying. Don’t try to fake it. Tweet This Quote
Me: “How much MRR did you have the previous month?”
Founder: “$14k”
Me: How much MRR did you have the month before?”
Founder: “$27k”
Me: “Why did you have so much churn from the $27k month to the $14k month?”
Founder: “We didn’t – that was just how much we sold that month.”
Me: “What do you mean, that’s how much you sold that month?”
Founder: “Well – that’s how many $ of transactions went through our system.”
Me: “You realize that’s not MRR, but that’s Gross Sales?”
Founder: “What’s the difference?”
Me: “What percentage of each transaction do you keep in your marketplace?”
Founder: “5% – we are trying to grow market share.”
Me: “So your net revenue last month was only $2.5k, right?”
Founder: “Um, ok.”?
Don’t worry about loading up your discussion with cliches and trendy words. Focus on telling the story of your business. Tweet This Quote