scalable solutions

How to Measure Scalability?

Several metrics can help in assessing the scalability of a business:
1. Customer Acquisition Cost (CAC): Lowering CAC while increasing the customer base is a good indicator of scalability.
2. Lifetime Value (LTV): A higher LTV indicates that customers are generating more revenue over time, contributing to scalable growth.
3. Gross Margin: Maintaining or improving gross margins as the business grows is a sign of scalable operations.
4. Operational Efficiency: Metrics like revenue per employee or cost per unit produced can provide insights into the scalability of operations.

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