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> But you say your burn rate is $500k/mth. Which suggests that there is a further $455k/mth being burnt on whatever. I just don't see how you'll ever become cas
by youngelderly 2y ago
> But you say your burn rate is $500k/mth. Which suggests that there is a further $455k/mth being burnt on whatever. I just don't see how you'll ever become cash-flow positive.
$455k/month is allocated to salaries, software's, and office expenses.
> Based on your numbers, I'm guessing you have about 40k customers
Every month, we acquire approximately 3,500 new customers. Our retention of existing customers is low due to the nature of our marketplace, which has low-frequency usage.
Edit/Fix: 3,500/Month -- not week, sorry :-(
- GianFabien 2y agoThanks for the additional data. With low retention, the situation looks even more dire. I understand the outgoing for salaries, software, office expenses. But in overall business terms all of those, too, need to be supported by the revenue generated. A viable business is one that sustains all its expenses and has a surplus to be re-invested. From the data so far, I'm guessing that it is unlikely to ever happen. Thus the suggestion that your gut feelings are spot on and it might be an idea to move on.