The MacDaddy sales metric – Sales Payback Period

image of word "payback"

One of the best gauges of your business’s ability to scale, is this metric, Sales Payback Period (SPP). SPP sets up a ratio between customer acquisition cost, and annual gross margin. Here’s an example to bring this concept home. A company sells intruder detection software on an annual subscription basis. In other words, a Saas […]Read More

On Speculation

person sitting on fence in field

It’s ok to speculate. That business plan in your hand. It’s a narrative about how the future will turn out. Speculation launches us into valuable conversations for action. But know that it’s speculation, not truth.Read More

The Accelerator Dilemma

tunnel with blurry lights

The folks who run accelerators, typically require nontechnical founders to find a technical co-founder. The thinking, is that adding a coder (ideally full-stack) will allow the startup to be more nimble and iterate faster, being more responsive to obtaining product – market fit. No argument here. However, finding the right full stack dude or dudette, […]Read More


sky and clouds

What’s your situation? What is your capacity, today, to pursue a new opportunity? If something exciting, or life-changing comes your way, can you act? Situation is composed of a number of domains. Some are obligatory. I owe money to the bank. I have a mortgage payment. I have promised my employer that I will work […]Read More

Gross Margin


Gross Margin, perhaps our favorite accounting metric, is calculated by subtracting what you product or service costs you (Cost of Sales), from what you sell your product for (Revenue). We typically express this as a % of Revenue. The higher the gross margin the better. A high gross margin gives the entrepreneur more room for […]Read More