<?xml version="1.0" encoding="UTF-8"?><rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:georss="http://www.georss.org/georss" xmlns:geo="http://www.w3.org/2003/01/geo/wgs84_pos#" xmlns:media="http://search.yahoo.com/mrss/"
		>
<channel>
	<title>Comments on: Single Unit Value Is More Important Than Growth</title>
	<atom:link href="http://larrycheng.com/2010/03/11/single-unit-value-is-more-important-than-growth/feed/" rel="self" type="application/rss+xml" />
	<link>http://larrycheng.com/2010/03/11/single-unit-value-is-more-important-than-growth/</link>
	<description>Some thoughts on VC, some on tech, and some on other stuff.</description>
	<lastBuildDate>Wed, 23 May 2012 03:40:02 +0000</lastBuildDate>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.com/</generator>
	<item>
		<title>By: John Sharp</title>
		<link>http://larrycheng.com/2010/03/11/single-unit-value-is-more-important-than-growth/#comment-2083</link>
		<dc:creator><![CDATA[John Sharp]]></dc:creator>
		<pubDate>Fri, 12 Mar 2010 04:42:13 +0000</pubDate>
		<guid isPermaLink="false">http://larrycheng.wordpress.com/2010/03/11/single-unit-value-is-more-important-than-growth/#comment-2083</guid>
		<description><![CDATA[Larry, this is the single best post written this year by a VC on what entrepreneurs (and their investment partners) should focus on.    

A company I met with recently took their single unit value from ten dollars to over two hundred by figuring out how to turn the initial contact into a &quot;multiple problem-solving experience&quot; for their customer.  That company&#039;s valuation (they are public) has increased ten-fold in less than eighteen months.

The problem hidden inside a low or non-existent single unit value is that there isn&#039;t sufficient money to satisfy distribution partners, marketing partners, or (sometimes) quality manufacturing or coding requirements.  Without an adequate dollar per customer per unit amount, companies that adopt low single unit values are doomed from the get-go.

Loser companies never make back their cost of acquiring a customer.  Solid companies focus on achieving at least an ROI on the cost of acquisition (i.e. a lifetime value of the customer greater than the cost of acquiring them).  

Great companies (and there are only a relatively small number of them) focus on knocking that ROI out of the park - by focusing first and foremost on single unit value.]]></description>
		<content:encoded><![CDATA[<p>Larry, this is the single best post written this year by a VC on what entrepreneurs (and their investment partners) should focus on.    </p>
<p>A company I met with recently took their single unit value from ten dollars to over two hundred by figuring out how to turn the initial contact into a &#8220;multiple problem-solving experience&#8221; for their customer.  That company&#8217;s valuation (they are public) has increased ten-fold in less than eighteen months.</p>
<p>The problem hidden inside a low or non-existent single unit value is that there isn&#8217;t sufficient money to satisfy distribution partners, marketing partners, or (sometimes) quality manufacturing or coding requirements.  Without an adequate dollar per customer per unit amount, companies that adopt low single unit values are doomed from the get-go.</p>
<p>Loser companies never make back their cost of acquiring a customer.  Solid companies focus on achieving at least an ROI on the cost of acquisition (i.e. a lifetime value of the customer greater than the cost of acquiring them).  </p>
<p>Great companies (and there are only a relatively small number of them) focus on knocking that ROI out of the park &#8211; by focusing first and foremost on single unit value.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Luke G</title>
		<link>http://larrycheng.com/2010/03/11/single-unit-value-is-more-important-than-growth/#comment-2079</link>
		<dc:creator><![CDATA[Luke G]]></dc:creator>
		<pubDate>Thu, 11 Mar 2010 19:49:02 +0000</pubDate>
		<guid isPermaLink="false">http://larrycheng.wordpress.com/2010/03/11/single-unit-value-is-more-important-than-growth/#comment-2079</guid>
		<description><![CDATA[Great post, Larry. This is exactly what the &quot;customer validation&quot; part of the customer development process and the lean startup are all about, and your addition/clarification of the importance of healthy single unit economics is awesome. Make sure your business model is part of the product/market fit you validate in your iterative seed stage THEN add rocket fuel and scale.]]></description>
		<content:encoded><![CDATA[<p>Great post, Larry. This is exactly what the &#8220;customer validation&#8221; part of the customer development process and the lean startup are all about, and your addition/clarification of the importance of healthy single unit economics is awesome. Make sure your business model is part of the product/market fit you validate in your iterative seed stage THEN add rocket fuel and scale.</p>
]]></content:encoded>
	</item>
</channel>
</rss>

