At Exactius, we specialize in scaling consumer and B2SMB companies rapidly and efficiently. Our unique approach leverages data-driven strategies and collaborative practices. Our secret? Deploying custom squads of expert operators and strategists to devise and execute on growth goals.
When partnering with high-potential companies, certain principles lead to seamless collaboration and accelerated results. Reflecting on a fast-growing partnership, David Manela, co-founder of Exactius, shared these learnings:
"From the very beginning, both our squad and the partner were crystal clear on the financial and business objectives. This mutual understanding was pivotal to our joint success."
Getting complete alignment on objectives from day one ensures all efforts ladder up to core KPIs. This transparency builds trust and focus.
The Power of Open Strategy
But it’s not just about aligning on goals. Providing full visibility into our growth playbooks and strategies is equally crucial and creates understanding.
This openness on tactics and strategy enables companies to better support initiatives and drive synergies across teams.
Zan Bennett
David Manela is the founder of Exactius and creator of the Growth Operating System — a framework for deploying capital-efficient, compounding growth inside scaling companies.
FAQ
Frequently asked
What practices help a company sustain rapid growth?
In the author's view, two practices mattered most in one fast-growing partnership. The first was agreeing on financial and business objectives from day one. The second was giving the company full visibility into growth playbooks and strategy, so both sides worked from the same plan. These are observations from a single engagement and are offered as the author's experience, not a tested formula.
What unit economics should a company agree on before scaling acquisition spend?
One benchmark is customer lifetime value (LTV) compared with customer acquisition cost (CAC). On his For Entrepreneurs blog, investor David Skok recommends that LTV exceed 3 times CAC for SaaS businesses with gross margins of 80% or more. He also says to calculate LTV on gross margin, not on revenue. Companies outside SaaS, or with lower margins, may need different targets.
How long should it take to earn back customer acquisition cost?
David Skok's original guideline for SaaS companies, from 2011, was to recover CAC in under 12 months. His updated notes say payback under 12 months is very rare in practice, and that around 20 months can work for enterprise businesses with a land and expand model. These are SaaS guidelines, so consumer and ecommerce companies should check them against their own margins and retention.
What is the difference between blended CAC and paid CAC?
Blended CAC spreads acquisition spend across all new customers, including those who arrive organically. Paid CAC counts only customers acquired through paid channels. Andreessen Horowitz's 2015 article "16 Startup Metrics" says blended CAC does not show whether paid campaigns are profitable, and that investors treat paid CAC as more important. The same article prefers measuring lifetime value at 12 and 24 months.
How often do growing companies stall?
Stalls are common, according to "When Growth Stalls," a 2008 Harvard Business Review article. The research found that 87% of the companies studied stalled at least once, and external factors explained only 13% of those stalls. For a company scaling quickly, this suggests reviewing its own strategy and decisions when growth slows, before attributing the slowdown to market conditions.
How much does customer retention affect profit during rapid growth?
Retention can have a large effect on profit. A 2014 Harvard Business Review article by Amy Gallo cites research by Frederick Reichheld of Bain & Company showing that a 5% increase in customer retention raises profits by 25% to 95%. A company growing quickly through acquisition can use that finding as a reason to track retention alongside new customer counts.
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