How to describe your business as an equation
Lenny Rachitsky
JANUARY 16, 2024
ARR = New ARR + Expansion ARR + Reactivation ARR – Churned ARR – Contraction ARR New ARR = Leads * qualified leads rate * meeting booked rate * win rate * ACV Leads = Direct + indirect Direct = Outbound + inbound Outbound Cold emails Cold calls Cold DMs Events Inbound Paid ads SEO Referrals (e.g. Instagram, Snap, YouTube).
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