Investor Connect Podcast

Diligencing the Customers in the Market

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In diligencing the customers in the market, check for the following:

  1. Who is the target customer?  
  2. What is the ideal customer profile?
  3. What is the customer acquisition strategy and cost?
  4. Do they have a standard process for acquiring customers?
  5. For pre-revenue companies, what is their go-to-market strategy?
  6. Have they priced their product appropriately for the target market and channel?
  7. Check their Cost of Customer Acquisition vs. Lifetime Value number. Is it better than 1:3?
  8. How many new potential customers are coming into the market?
  9. Are there high switching costs that must be overcome for customers to engage the company’s product?
  10. Does the ideal customer already have a budget set aside for the product, or do they need to find a budget for it?
  11. Is there any virality built into the product or the business model?
  12. What is the channel through which the company contacts customers -- web, direct, partners, or other?

From these points, you can learn more about the customers for the target startup and how strong they are.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Direct download: Diligencing_the_Customers_in_the_Market.mp3
Category:general -- posted at: 6:00am CDT