Our #1 goal is always to provide you with the best product and service possible. Here’s an example of an email you can send:įirst off, I want to thank you for being a customer. So your best bet is to explain why you’re raising your prices and the benefit your customers will get from it. Nobody wants to pay more money for essentially the same product/service. The key to increasing pricing for existing customers is to be honest and transparent. If you really want to move the needle and extend your runway, you might need to consider the uncomfortable alternative-increasing prices for existing customers. In other words, if you’re not getting a lot of new customers, don’t expect this to magically double your runway. In most cases, the impact of increasing your prices for new customers is proportional to the number of new customers you get each month. There’s a caveat with this approach though. That’ll stop you from having those awkward “why is my price going up?” conversations. If you’re still getting new customers each month, then you can start by just increasing the prices for new customers. However, it doesn’t have to be as unpleasant as you might think. When your runway is dangerously short, having those uncomfortable conversations might be a necessity. Telling people to pay you more money isn’t the most comfortable conversation to have.īut here’s the thing. With that change, we’ve effectively doubled our runway.Ī lot of founders are terrified of raising their prices, and it’s understandable. Now let’s see what happens if we increase the pricing across all plans by 20%. With our current churn rate and monthly customer growth, our runway is less than two months. Let’s say we’re a SaaS startup with three pricing plans: One of the most straightforward ways to add revenue and extend your runway is to raise your prices. Learn more: How Much Runway Should Your Startup Have? 1. Our goal is to give you options, so you can pick the strategies that make the most sense for your business. I’ll break down 12 strategies (with examples) to extend your startup runway so you have more time to build and grow your business, without the constant fear of running out of money.īear in mind, every tactic we cover might not be the best fit for your startup. If it were that easy, there wouldn’t be an entire website dedicated to startups that have failed. In order to extend your cash runway, you need to get more money in the bank or reduce the amount that goes out. When your startup's runway is too short, you’ll miss your opportunity to take off Click To Tweet 12 Ways to Extend Your Startup Runway You can still extend your startup’s runway and take off to success. Whether your growth has stalled, or you only have a couple of months of runway left, don’t worry. When your startup runway is too short, you’ll miss your opportunity to “take off”. In order for your business to be able to “fly”, you need enough runway to gain traction and build momentum. Before a plane can take off, it needs enough runway to pick up speed until it eventually soars into the air.
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