Establishing Research Operations for Revenue Growth Management or Net Revenue Management (Lever wise analysis?)

Definitely DON'T go for funding at this stage. It would be just TOO COSTLY for you in terms of the stake you will have to give away for a limited amount. Most likely at this stage, you don't even have a clear picture if you really need the investment. Have you mobilized all the cash you can on your own? All I mean absolutely all. You don't want to ask for money when you are saving some bucks just in case your idea doesn't work. Have you raised some from FFF (Family, Friends and Fools)?. Again, don't go to angels until you have covered your very basics with those. All in all, most probably what is best for you is to grow this a bit more, get some proper biz metrics in place (churn, growth, revenue per user ...), experiment a bit with which marketing tools will work best for you and start a fire. When you have this fire started (i.e. you know, backed by data, what works and what doesn't), then YOU MAY buy some gasoline (i.e. ask for cash). Don't do it before. Always keep this in mind that I read in some book: "A FOOL AND HIS/HER EQUITY ARE SOON DEPARTED" Pere

Start experimenting by putting the 2 things in place you say you are missing: 1. create a validated learning model 2. Stop focusing on vanity metrics; replace with user growth, cohort analysis or growth metrics. Do not just read Lean principles; APPLY them. Also, What are you doing to brand your company? What are you doing to engaging people who have the problem your service solves? Does it actually solve their problem? Do you know what their problems are? What do THEY think their problems are?

One thing I like about your question is the fact that you're ASKING it. Trying to quantify profit. Most people never even get that far. They treat profit--especially if it is that of their own business--as some ethereal thing they will "get later" if possible. "To manage we must measure" is a business maxim and a fundamental one for me. If we don't build Profit into our revenue equation, we're unlikely to get any. And so asking this question and building profit right into your revenue target is a powerful idea nearly all small business owners totally miss. As for an answer...that amount is really up to you. What do you need to survive? There are so many variables we don't know about: what kind of business, what scale, what paths to market are you using, etc. etc. that affect costs, together with the price tolerance of your marketplace, that it's not possible to give an "average" answer. When I train business owners on how to set their operation up for success, I recommend 20-30% of revenue be built in as a monthly amount for profit. However, this is usually for consultants, and may not be possible for other business models. Sometimes 5% profit is what's achievable, say for a commodity provider, and if they make money with that, OK. Have you done any studies of comparative firms in your niche?

10% of the total monthly sales churning on an absolute basis is near fatal. That means that within 5 months, you have 50% absolute churn per year, which reveals fundamental flaws with the service itself. Anything above small single digit churn is telling you and your team that customers are not seeing enough value in your product. I'd start by doing as many exit interviews as you can with those that have churned out, including, offers to reengage at a lower price-point while you fix the issues that matter to them. Happy to talk through this in more detail in a call.

Having worked in this area, both as a client and as a consultant, customer understanding is a key to differentiating yourself from your competition. First a personal belief: surveys are the worst tool to uncover any insights. They are best used to quantify how many do X. There are a couple of ways we look for insights into customer behavior, and they are both related by fact that you learn by observation. First is to have your customer demonstrate how they use your product/service, or the product you want to replace, in their normal situation. Ideally you let them run through once just observing what they are doing while taking notes. Then ask them to go through it again where you ask them open-ended questions as they go along. No judgement, just watch and learn. The second way is to engage them in a serious game, something like the ones we use from Conteneo.co. These are frameworks designed to have the customer create things like the Product Box which encapsulates the key features, benefits, etc. that they are looking for in an ideal product/service like your. The reason these techniques work well is that the customer is comfortable, they are not being interrogated, and you are cast in the role of the observer, so you're not selling! Let us know if there's something we can do to help you with this, because it's an important question.