Comments on: The power of clarity http://www.theequitykicker.com/2009/10/08/the-power-of-clarity/ Nic Brisbourne's view from London on venture capital and exploiting change in technology and media Sat, 11 Feb 2012 20:08:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: brisbourne http://www.theequitykicker.com/2009/10/08/the-power-of-clarity/#comment-6486 brisbourne Fri, 09 Oct 2009 19:21:58 +0000 http://www.theequitykicker.com/2009/10/08/the-power-of-clarity/#comment-6486 Thanks James. I agree. I went for Spotify instead because I've been going on about Graze a lot recently. Thanks James. I agree. I went for Spotify instead because I've been going on about Graze a lot recently.

]]> By: James Penman http://www.theequitykicker.com/2009/10/08/the-power-of-clarity/#comment-6485 James Penman Fri, 09 Oct 2009 13:53:04 +0000 http://www.theequitykicker.com/2009/10/08/the-power-of-clarity/#comment-6485 'graze - nature delivered' is an exceptional example of what you describe. 'graze – nature delivered' is an exceptional example of what you describe.

]]> By: brisbourne http://www.theequitykicker.com/2009/10/08/the-power-of-clarity/#comment-5921 brisbourne Fri, 09 Oct 2009 13:21:58 +0000 http://www.theequitykicker.com/2009/10/08/the-power-of-clarity/#comment-5921 Thanks James. I agree. I went for Spotify instead because I've been going on about Graze a lot recently. Thanks James. I agree. I went for Spotify instead because I've been going on about Graze a lot recently.

]]> By: James Penman http://www.theequitykicker.com/2009/10/08/the-power-of-clarity/#comment-5920 James Penman Fri, 09 Oct 2009 07:53:04 +0000 http://www.theequitykicker.com/2009/10/08/the-power-of-clarity/#comment-5920 'graze - nature delivered' is an exceptional example of what you describe. 'graze – nature delivered' is an exceptional example of what you describe.

]]> By: Nicholas Lovell http://www.theequitykicker.com/2009/10/08/the-power-of-clarity/#comment-5919 Nicholas Lovell Thu, 08 Oct 2009 12:34:07 +0000 http://www.theequitykicker.com/2009/10/08/the-power-of-clarity/#comment-5919 I think that this can be solved in a couple of different ways. One of the main things I do with my clients is build a spreadsheet with funnel with users appearing at the top and revenues falling out of the bottom. As you walk through all the steps (e.g. from visitor to registered user to paying user x ARPU), you start to see which elements of your business are important and which levers of success are available for you to pull.<br><br>For example, one client was focused on registered users, but only active users generate revenue. Because of their focus, the attention on the senior management team was all about getting people through the door, not interacting with them and getting them to come back more often.<br><br>I find that the discipline of going through a very carefully thought out model helps senior teams understand which bits of their business really matter, and which ones are distractions which a start-up should avoid.<br><br>Just to be clear, I'm not saying that revenues are the be-all and end-all, far from it. I'm just saying that by understanding the levers in your business model, it is much easier to grow your business effectively. I think that this can be solved in a couple of different ways. One of the main things I do with my clients is build a spreadsheet with funnel with users appearing at the top and revenues falling out of the bottom. As you walk through all the steps (e.g. from visitor to registered user to paying user x ARPU), you start to see which elements of your business are important and which levers of success are available for you to pull.

For example, one client was focused on registered users, but only active users generate revenue. Because of their focus, the attention on the senior management team was all about getting people through the door, not interacting with them and getting them to come back more often.

I find that the discipline of going through a very carefully thought out model helps senior teams understand which bits of their business really matter, and which ones are distractions which a start-up should avoid.

Just to be clear, I'm not saying that revenues are the be-all and end-all, far from it. I'm just saying that by understanding the levers in your business model, it is much easier to grow your business effectively.

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