Here is the actual full article Lenny’s Newletter
Key Takeaways:
In the dynamic world of business, success often boils down to a simple equation, and understanding this formula is key to unlocking a venture’s true potential. This article sheds light on the essential business equations that encapsulate the inputs, outputs, and interactions driving various tech business models.
- B2B SaaS Equations:
- Bottom-up B2B SaaS with seat-based pricing.
- Bottom-up B2B SaaS with usage-based pricing.
- Top-down (sales-led) B2B SaaS.
- B2C/Consumer Equations:
- B2C with subscription-based pricing (trial or freemium).
- B2C with ads (free for the user).
- Marketplace Equations:
- B2C marketplaces.
- B2B marketplaces.
- DTC/E-commerce Equation:
- Direct-to-consumer (DTC) and e-commerce.
How to Make the Most of This Post:
- Craft your business’s unique equation using inspiration from the examples provided.
- Engage your team in a discussion about your business growth through the lens of this formula.
- Identify the highest-leverage levers within your equation and allocate resources strategically.
- Experiment with new levers to fuel innovation.
- Consider turning your formula into a comprehensive growth model.
Closing Thoughts: Every business is unique, and while these equations offer foundational insights, they may require adaptation to match the intricacies of your venture. Embrace the challenge, provide feedback on missing elements, and let these equations serve as your guide in navigating the complex landscape of business growth. After all, understanding the mathematics behind your business is the first step towards achieving unprecedented success.
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