Business Viability Formula

1. Customer acquisition cost must be lower than lifetime value to ensure business success—this single equation determines whether a company will survive or fail according to Kevin O'Leary from Shark Tank.
2. 8 out of 10 businesses fail within the first 36 months primarily because they spend more on client acquisition than the return on investment they receive from those clients.

Customer Economics Calculation

1. Calculate lifetime value by analyzing purchase frequency and average order value over a defined period like 3 years—for example, a customer spending an average of $20,000 over 3 years represents their total lifetime value.
2. Over 90% of people cannot calculate their customer acquisition cost, yet knowing this metric and comparing it to lifetime value is essential for creating an effective marketing strategy.

Growth Strategy

1. Reduce customer acquisition cost while increasing lifetime value through product expansion and service bundling to create a winning sales strategy that attracts investors.