Financial Model
Knowing the financial model for your business is critical to your success as a leader. Things you should have a thorough understanding of:
- Your Gross Margins: how much cash does each sale generate?
- Your CAC: how much cash are you investing into acquiring the sale?
- Your Overhead: how much cash do you need to cover your operating expenses each month?
- Your Profit Margin: how much free cash flow is the business generating by continuing to operate?
These are the questions your CEO, CFO and board think about every single day.
As you answer these questions, you begin to understand how your role / team / department fits into the bigger financial picture of the organization.
The more you understand that financial picture, the more you can figure out how to deploy the budget at your disposal to make the organization more successful.
It's also how you can lobby for more budget to grow your impact on the organization.
Subscribe to SaaS Marketing Simplified!
Get bite-sized insights on SaaS marketing, growth and strategy in your inbox a few times a week.
Buy our bestselling book: Post-Acquisition Marketing
Are you a B2B Investor, CEO or Marketing Leader? Post-Acquisition Marketing will give you the tried-and-tested framework you need to increase marketing investment and hit aggressive growth targets.
About How To SaaS
We help SaaS companies build a high performance marketing system to drive top-line revenue growth and enterprise value.
Subscribe to SaaS Marketing Simplified!
Get bite-sized insights on SaaS marketing, growth and strategy in your inbox a few times a week.