When to start calculating LTV vs CAC and how to use it?

"ForEntrepreneurs" featured an article by Jared Sleeper of Matrix Partners discussing when is the right time for a start up to calculate Long Term Value (LTV) vs Customer Acquisition Cost (CAC). and how to use these metrics.  Companies should wait until they have a repeatable and scalable process to rely on this calculation but can also glean:

  • Which type of customer is worth acquiring
  • How much to spend to acquire a customer
  • How many sales reps should you hire