S.W.O.T analysis and LTV sections

S.W.O.T analysis and LTV sections

Lesson Details:
March 03, 2020

Video Transcription: Now let's talk about the SWOT analysis for the business plan for the ground business after the two-year mark in its current maturity and most of these still are correct with one major thing that I want to bring to your attention and that's that there are so many strategies now that a division of focus is a problem it's a threat what I mean by division of focus is like there's online there's offline there's five different product lines there's the inventory management that's an issue now there's a lot more to manage and it's not about how many things you're doing it's about how many things you're doing really really really well I'll give you an example you know that it's the number one ground cleaning product on Amazon fine but if this company had like a hundred products that were all mediocre they would still be selling way less than just that one successful product so it's not the numbers of strategies that you're pursuing it's the quality of the execution how many are you executed really well and this might be a problem because there is a bigger staff now but it's not big enough to handle everything that lack of focus might be an issue and time will tell if it's gonna be a problem so we don't know that but it is a threat and that's what I wanted to know another very quick thing is the revenue streams they're similar to what we've seen before same pricing just more products so we'll skip over that it's not that exciting what's a little new and interesting is that lifetime customer value amount that this company has been selling products now some data is known we know for example that the average order size is twenty four seventy five this obviously fluctuates a little more a little less with different experimentation even in shopping season versus not but overall this is the average and there's a reorder rate oh we know 12% of the people reorder that's the revenue so obviously we know what the profit is from that and now that we know what the profit is from that we know exactly how much we can spend let's say in ads or something like that while keeping the ads profitable so now we have this extra data that we didn't have before in the next video we're going to talk about the cash flow statement because there's now a lot of expenses and there's a lot of stuff happening so we're gonna talk about that in the next video.

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