Fri, 14 April 2023
Benefits of a Platform-Based Approach
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
A platform-based approach to your business brings many benefits
Platforms make it easier to use a recurring revenue model.
Investors appreciate the value of this revenue model.
It brings predictability to the forecast and makes it somewhat easier to manage the business and raise funding.
With three metrics, cost of acquisition, churn rate, and growth rate you know how well you are doing.
There are other benefits to a platform-based approach.
By focusing your development on one platform the product gets better every day increasing your reach to new customers and keeping existing ones.
It also reduces your cost because you are continually adding to your base platform and not spending resources creating new products from scratch.
It helps you focus your team as everyone works on the same platform, reducing distractions.
All development results are available to all customers so there’s no resource spent on porting features to other products.
Platforms bring efficiency and revenue gains compared to the individual product approach.
Consider focusing your product development on a platform.
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